-NCH2 


THE   HUMAN   FACTOR   IN   INDUSTRY 


THE  MACMILLAN  COMPANY 

NEW  YORK    •    BOSTON   •    CHICAGO   •    DALLAS 
ATLANTA  -    SAN    FRANCISCO 

MACMILLAN  &  CO.,  Limited 

LONDON  •  BOMBAY  ■  CALCUTTA 
MELBOURNE 

THE  MACMILLAN  CO.  OF  CANADA,  Ltd. 

TORONTO 


THE  HUMAN  FACTOR 
IN  INDUSTRY 


BY 

LEE   K.   FRANKEL,   Ph.D. 

THIRD    VICE-PRESIDENT 


ALEXANDER   FLEISHER,    Ph.D. 

ASSISTANT    SECRETARY 
METROPOLITAN    LIFE    INSURANCE    COMPANY 


WITH  THE  COOPERATION 

or 

LAURA  s.  SEYMOUR 


Neto  I] ark 

THE   MACMILLAN   COMPANY 
L920 

All  rights  reserved 


■S4-  •  e  \ 


COPYRIGHT,    1920, 

By  THE  MACMILLAN  COMPANY. 


Set  up  and  electrotyped.     Published  June,  1920 


Nortoool)  $«B3 

«T.  8.  Cushing  Co.  —  Berwick  &  Smith  Co. 

Norwood,  Mass.,  U.S.A. 


HP 

Fv 


HALEY  FISKE,  Esq. 

PRESIDENT 
METROPOLITAN   LIFE   INSURANCE   COMPANY 

WHO  GAVE  US  THE  OPPORTUNITY  TO  USE  THE  COMPANY'S 
FACILITIES  FOR   THE  PREPARATION   OF  MATERIAL 
AND  WITHOUT   WHOSE    SYMPATHETIC   IN- 
TEREST,  THIS  BOOK  WOULD  NOT 
HAVE     BEEN     POSSIBLE 


PREFACE 

The  constantly  increasing  interest  on  the  part  of  em- 
ployers of  labor  in  their  employes  has  led  the  authors  to 
prepare  this  volume,  which  deals  primarily  with  personnel 
and  service  work  in  industry.  It  has,  of  course,  been  impos- 
sible in  the  consideration  of  these  two  important  subjects 
to  omit  reference  to  other  questions  which  are  involved, 
such  as  wages,  hours  of  labor,  working  conditions,  etc. 

How  great  has  been  the  interest  in  the  human  factor  in 
industry,  is  evidenced  by  the  ever  increasing  literature  on 
the  subject.  The  War  and  the  industrial  problems  arising 
from  it  added  greatly  to  the  literature  published  by  govern- 
mental agencies  and  private  individuals. 

In  the  books,  pamphlets,  monographs  thus  far  issued, 
there  has  been  no  general  discussion  of  the  problems  in- 
volved. Most  of  the  studies  made  have  been  along  special 
lines  and  have  dealt  only  with  certain  phases  of  the  problem. 
The  average  employer,  interested  essentially  in  production 
and  the  relation  of  service  measures  in  industry  to  increased 
production,  has  had  no  single  volume  or  group  of  volumes  to 
which  he  might  turn  for  the  information  he  required.  To 
help  supply  this  need  has  been  the  thought  of  the  authors. 

It  is  our  hope  that  the  employer  who  has  developed 
service  activities  will  find  something  of  use  to  him.  The 
employer  who  is  considering  their  introduction  in  his  plant 
may  find  the  material  here  made  available  of  value  to  him 
in  formulating  his  plans.  The  general  reader  who  is  some- 
what at  sea  regarding  these  newer  industrial  movements 
may  possibly  find  an  answer  to  his  question.     The  volume, 

vii 


viii  PREFACE 

we  hope,  may  be  used  as  a  text  book  in  service  and  personnel 
management  technique. 

In  the  past  the  treatment  given  to  this  phase  of  industrial 
work  has  been  by  industry  rather  than  by  subject.  The 
former  has  the  advantage  of  giving  a  complete  picture  of  the 
particular  industry.  Arrangement  by  subject  has  the  ad- 
vantage of  enabling  the  reader  to  learn  the  cumulative  ex- 
perience of  many  employers  and  to  acquaint  himself  with 
the  philosophy  which  underlies  such  experience.  With  this 
in  mind,  we  have  endeavored  to  give,  under  proper  subject 
headings,  an  analysis  of  what  has  been  accomplished  in 
industry,  and  an  interpretation  of  the  purposes  and  mo- 
tives which  have  brought  personnel  and  service  work  into 
being. 

In  the  last  analysis,  the  value  of  personnel  and  service 
work  will  be  measured  by  the  employer  in  terms  of  increased 
production  and  by  the  employe  by  the  opportunities  which 
are  accorded  to  him  for  personal  development  both  financial 
and  spiritual.  Both  groups  will  measure  such  service  by 
the  yard-stick  "Does  it  pay ? "  " Is  it  worth  while ? "  Will 
production  increase  in  quantity  and  in  quality?  Will  the 
worker  have  opportunity  for  better  living  and  for  better 
self-expression  ? 

We  have  not  attempted  to  incorporate  a  complete  bib- 
liography, but  instead  have  limited  ourselves  to  a  citation  of 
the  sources  of  information  in  regard  to  any  given  fact.  These 
studies  in  themselves  form  a  reasonably  good  selected  bibli- 
ography of  the  subject. 

We  are  exceedingly  grateful  to  Miss  Laura  S.  Seymour 
for  her  enthusiasm  and  interest.  But  for  her  efforts,  and 
especially  her  ability  to  organize  material,  we  doubt  whether 
we  would  have  found  the  time  to  prepare  this  work.  We 
want  to  take  this  opportunity  to  thank  Miss  Emily  H.  Hun- 
tington for  her  assistance  in  the  preparation  of  the  chapters 
on  "Insurance"  and  "Community  Activities,"  Miss  Con- 


PREFACE  ix 

stance  A.  Kiehel  for  her  help  on  the  chapters  on  "Recrea- 
tion," and  Miss  Marguerite  A.  Goeks,  Reference  Librarian, 
for  her  effective  work  in  collecting,  assorting,  and  preparing 
material.  We  trust  that  we  have  given  credit  to  the  authors 
whose  investigations  and  writings  we  have  used  and  to  the 
corporations  and  individuals  who  responded  so  willingly  and 
at  much  length  to  our  inquiries  for  specific  information. 


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TABLE   OF   CONTENTS 

PAGE 

Preface          ..........  vii 

CHAPTER 

I.     Introduction     ........  1 

II.     Hiring  and  Holding 20 

III.  Hiring  and  Holding,  Continued    ....  47 

IV.  Education  .........  77 

V.     Working  Hours         .         .         .         .         .         .         .111 

VI.     Working  Conditions         ......  135 

VII.     Medical  Care 163 

VIII.     Method  of  Remuneration 200 

IX.     Refreshment  and  Recreation         ....  226 

X.     The  Employer  and  the  Community        .         .         .  260 

XI.     Insurance,  Savings,  and  Loans       ....  293 

XII.     Organization  of   the  Department  of  Labor  Ad- 
ministration     326 

List  of  References      , 337 


THE   HUMAN   FACTOR 
IN   INDUSTRY 

CHAPTER  I 
INTRODUCTION 

The  Function  of  Labor  Administration 

"  For  the  strength  of  the  pack  is  the  wolf,  and  the  strength  of  the 
wolf  is  the  pack."  —  Kipling. 

Human  Factor  Ignored  in  Quantity  Production.  —  Mod- 
ern industrial  history  is  the  history  of  the  war  against  waste  ; 
the  war  for  economy  of  effort  in  methods  of  production  and 
complete  utilization  of  raw  materials.  In  the  striving  for 
these  results  the  proprietor  of  the  small  workshop  with  his 
few  workers  gave  way  to  the  corporation  housing  its  indus- 
trial armies  in  large  factories.  With  the  concentration  of 
workers  and  capital  under  one  management,  the  inanimate 
machinery  of  manufacturing  was  perfected  and  cared  for; 
the  human  machinery,  on  the  other  hand,  until  recently  was 
practically  ignored.  Differentiation  of  processes  made  the 
workers'  tasks  more  simple  and  mechanical  and  lessened 
the  need  for  skill.  The  worker  lost  individuality  and  be- 
came essentially  an  adjunct  to  the  machine,  easily  procur- 
able, easily  replaceable,  and  apparently  requiring  little  con- 
sideration or  thought. 

The  Workers'  Only  Part  in  Production  a  "  Fair  Day's 
Work." — The  growth  in  the  size  of  the  business  unit  of 
necessity  destroyed  the  personal  relation  between  employer 


2  THE    HUMAN   FACTOR  IN    INDUSTRY 

and  employe.  This  separation  contributed  to  the  easy  and 
common  belief  of  the  manufacturer  that  he  could  overlook 
the  effect  of  work  and  working  conditions  on  his  employes. 
The  employer  was  interested  in  obtaining  a  working  force 
but  not  in  maintaining  it.  But  the  maintenance  of  the  men- 
tal and  physical  vitality  of  the  workers,  which  makes  possible 
vigorous  and  willing  effort,  is  an  essential  in  modern  machin- 
ized  industry.  It  is  in  forgetting  this  that  employer,  em- 
ploye and  community  suffer  from  the  diminished  productivity 
of  a  devitalized  indifferent  working  force,  one  that  has  been 
taught  that  its  only  part  in  industry  is  to  give  a  "  fair  day's 
work." 

Past  Efforts  to  Improve  Working  Conditions.  —  It  would 
be  unfair  to  state  that  since  the  inception  of  modern  indus- 
try, employers  have  made  no  attempts  to  ameliorate  the  lot 
of  the  worker  and  to  combat  the  unfavorable  conditions  in- 
herent in  machine  production.  Improvements  of  two  kinds 
have  gradually  taken  place  —  those  forced  upon  the  em- 
ployer and  those  voluntarily  granted  by  him.  The  first 
comprises  those  brought  about  by  legislation  —  such  as  lim- 
itation of  hours  of  labor,  sanitation  of  factories,  and  indus- 
trial accident  compensation,  and  those  brought  about  by  col- 
lective bargaining  —  such  as  reduced  hours,  improved  work- 
ing conditions  and  higher  wages.  The  voluntary  efforts  of 
employers  to  improve  working  conditions  have  been  vari- 
ously known  as  industrial  betterment,  welfare  work  and  serv- 
ice for  employes.  As  these  terms  indicate,  employers  have 
made  voluntary  improvements  in  the  past  largely  in  an 
altruistic  spirit  and  not  as  a  measure  of  economy. 

New  Attitude  toward  Labor  Administration.  —  To-day 
the  progressive  employer  realizes  that,  apart  from  other  rea- 
sons, economy  alone  demands  further  adjustments  between 
work  and  workers,  and  considers  service  to  employes  an  in- 
tegral part  of  production.  To  this  end.  departments  of  labor 
administration  have  been  organized  in  many  plants  in  recog- 


INTRODUCTION  3 

nition  of  the  needs  of  the  human  factor  in  industry.  They 
aim  to  increase  output  by  providing  the  worker  with  every 
physical  and  mental  stimulus  fco  greater  efficiency.  Labor 
administration  is  concerned  with  those  activities  carried  on 
by  employers  and  employes  jointly  or  separately  which  benefit 
both,  have  as  their  unit  the  industrial  plant  and  are  not  en- 
forced by  law  or  by  organized  labor  *  Carrying  out  the 
instructions  of  a  legislature  or  conforming  to  the  demands 
of  a  union  are  the  negative  approach  to  the  problems  in- 
volved. These  instructions  and  demands  merely  enforce 
accepted  standards.  To  secure  the  best  interests  of  the  em- 
ployer and  employes  the  progressive  manager  must  be  in 
advance  of  prevailing  conditions  of  employment.  He 
must  improve  and  devise  new  methods  for  the  economical 
application  of  human  labor  to  production. 

Standards  for  Evaluating  Labor  Administration 

Experimental  Period  Past.  —  Labor  administration  has 
passed  through  its  first  stage,  that  of  experimentation. 
The  second  period,  one  of  interpretation  and  evaluation, 
has  been  reached.  The  future  depends  upon  the  result 
of  this  scrutiny.  If  labor  administration  can  be  shown  to 
be  of  value,  and  can  be  correlated  to  efficient  management, 
it  will  enter  into  the  third  period,  that  of  extension  and 
expansion. 

Three  Points  to  be  Considered.  —  Community,  employer, 
and  employe  agree  that  the  fundamental  purpose  of  in- 
dustry is  to  produce  the  greatest  possible  quantity  and  the 
best  quality  of  useful  commodities  with  the  least  possible 
cost  and  effort.     Each  one  measure-  industrial  achievement 

*  In  Industrial  Management,  October,  1917,  "Labor  Maintenance  Serv- 
ice" is  defined  to  include  "those  factory  and  community  activities  con- 
ducted  by  employers,  employes,  or  by  both  jointly,  for  the  direct  benefit 
of  the  employe-  and  for  the  indirect  improvement  of  production."  As  in- 
dicated above,  this  definition  does  not  seem  Mifficiently  restricted. 


4  THE    HUMAN  FACTOR  IN   INDUSTRY 

with  a  different  rule.  The  community  wants  the  lowest 
legitimate  retail  commodity  price;  the  employer,  higher 
dividends  on  the  capital  investment;  and  the  employe,  a 
larger  share  of  profits  in  the  form  of  wages.  In  justifying 
the  expense  of  labor  administration  it  must  be  proved  not 
only  that  it  leads  to  increased  production  but  that  the  bene- 
fiis  derived  are  distributed  among  all  three  groups.  The 
policy  holders  in  a  mutual  insurance  company  will  favor 
the  installation  of  rest  and  recreation  rooms  for  employes 
of  the  company  and  medical  equipment  for  their  care,  if 
these  do  not  reduce  dividends.  They  judge  from  the  stand- 
point of  the  consumer  in  considering  the  price  of  a  com- 
modity, and  their  adverse  or  favorable  judgment  may  affect 
the  sale  of  policies.  In  any  cooperative  enterprise  and 
other  lines  of  business  to  a  less  obvious  degree,  the  con- 
sumer's point  of  view  is  important  with  respect  to  ap- 
propriations for  labor  administration.  On  the  other  hand, 
a  corporation  must  prove  to  its  stockholders  in  terms  of 
dividends  that  this  service  is  sound  business.  Further,  an 
employer  may  arouse  the  distrust  of  his  employes  if  he  in- 
stalls any  form  of  such  service  without  first  convincing  them 
of  its  immediate  value  to  them.  There  are,  therefore,  two 
distinct  phases  to  the  evaluation  of  labor  administration  — 
first,  does  it  mean  improved  quantity  or  quality  of  output, 
and  secondly,  how  do  the  consumer,  the  management,  and 
the  worker  share  in  the  benefits  of  this  improved  output? 

Effect  on  Productivity.  —  It  is  difficult  to  estimate  the 
value  of  labor  administration  in  concrete  terms.  When 
possible,  results  in  dollars  and  cents  and  in  increased  out- 
put have  been  given  in  the  chapters  which  follow.  More 
often  the  value  of  this  service  can  be  measured  only  in- 
directly by  factors  such  as  stability  of  labor  force,  ab- 
senteeism, sickness,  or  accidents.  Moreover,  much  of  this 
work  is  of  recent  origin.  The  effects  will  be  cumulative  and 
noticeable  only  several  years  after  its  introduction. 


INTRODUCTION  5 

Attitude  of  the  Community.  —  Labor  administration 
has  been  too  limited  in  extent  to  warrant  the  statement 
that  it  has  had  any  appreciable  effect  upon  the  community, 
except  in  isolated  instances.  The  advanced  attitude  of  the 
community  toward  these  activities,  however,  is  reflected 
in  a  decision  of  the  Court  of  Appeals  of  New  York,  in  1909, 
giving  the  Metropolitan  Life  Insurance  Company  the  legal 
right  to  purchase  necessary  real  estate  on  which  to  erect  a 
sanatorium : 

A  corporation  may  not  only  pay  its  employe  the  actual  wage 
agreed  upon  but  may  extend  to  him  the  same  humane  and  rational 
treatment  which  individuals  practice  in  like  circumstances.  It 
must  do  this  in  order  to  get  competent  and  effective  service.  Old- 
age  pensions,  medical  attendance  in  illness,  etc.,  are  not  to  be  de- 
fended upon  the  ground  of  gratuity  or  charity,  but  they  enter  into 
the  relation  of  the  employer  and  employe,  become,  as  it  were,  a  part 
of  the  inducement  for  the  employe  to  enter  the  employment  and 
serve  faithfully  for  the  wage  agreed  upon,  and  become  a  part  of 
the  terms  of  employment.  .  .  . 

The  reasonable  care  of  its  employes,  according  to  the  enlightened 
sentiment  of  the  age  and  the  community,  is  a  duty  resting  upon  it, 
and  the  proper  discharge  of  the  duty  is  merely  transacting  the 
business  of  the  corporation. 

Value  to  the  Employes.  —  Because  labor  in  the  past 
had  small  voice  in  the  division  of  profits,  its  attitude  toward 
the  development  of  industry  has  been  negative.  Labor's 
cry  has  been  for  more  leisure  hours  away  from  the  factory 
and  for  more  money  to  spend  ;  without  these,  increased  pro- 
duction seems  unimportant.  It  is  inevitable  that  labor 
should  retard  any  effort  to  develop  human  machinery  which 
is  made  without  its  consent  and  its  own  tangible  reward  in 
view.  The  individual  employe  cannot  abstract  himself 
from  his  labor  power,  he  cannot  look  at  it  as  a  commodity, 
and  when  an  employment  manager  or  a  scientific  manager 
assumes  the  authority  of  an  expert  in  devising  means  by 
which  the  employe  may  double  or  quadruple  his  labor  power, 


6  THE   HUMAN  FACTOR  IN  INDUSTRY 

the  latter  naturally  looks  for  the  personal  benefit  to  be  de- 
rived therefrom.  The  employe  will  agree  that  it  is  good 
to  increase  the  efficiency  of  the  working  force  and  produc- 
tion by  any  means  which  brings  him  a  share  in  the  benefits 
of  this  increase.  If  labor  administration  is  translated  to 
mean  to  him  merely  a  deduction  from  wages  for  a  group 
sickness  insurance  scheme,  or  a  periodic  medical  examina- 
tion, or  the  interruption  of  his  piecework  by  enforced  rest 
periods,  he  will  be  doubtful  of  its  value.  If  there  is  the 
slightest  suspicion  among  employes  that  their  efficiency 
is  being  increased  at  the  expense  of  their  happiness  and  that 
so-called  "  labor  administration  "  is  a  substitute  for  rea- 
sonable hours,  decent  wages,  and  independence,  it  is  doomed 
to  failure.  If  the  value  of  this  service  is  not  apparent  to 
the  employe  in  higher  money  wages,  he  must  at  least  be 
convinced  that  his  own  greater  efficiency,  due  to  such  things 
as  proper  health  supervision,  opportunity  for  recreation,  and 
lessened  worry  for  the  future,  has  increased  his  "  real  wages  " 
and  his  capacity  for  enjoying  life. 

New  Names  for  Old 

Historical  Origin  of  Labor  Administration.  —  Preparatory 
to  a  survey  of  modern  methods  of  labor  administration  it 
is  interesting  to  trace  their  origin  in  history,  prior  to  the 
adoption  of  the  term  "  welfare  work."  The  recent  growth 
of  welfare  activities  has  been  so  rapid  and  universal  that 
we  are  prone  to  consider  them  a  new  development  in  in- 
dustry. On  the  contrary,  we  find  that  even  in  medieval 
industry  employers  provided  for  the  well-being  of  their 
employes  in  ways  which  seem  strikingly  modern. 

Provisions  for  the  Welfare  of  Journeymen  and  Appren- 
tices in  Medieval  Industry.  —  In  the  medieval  guilds  ar- 
rangements were  made  for  the  adjustment  of  grievances. 
In  Coventry  in  1520  the  Masters  of  the  Cappers  were  obliged 


INTRODUCTION  7 

"  to  go  once  a  year  to  all  the  shops  of  their  craft  and  call  the 
apprentices  before  them,  and  if  the  apprentice  complained 
three  times  against  his  master  for  '  insufficient  finding,' 
they  had  power  to  take  him  away  and  put  him  with  another 
master."  !  Nor  was  the  sick  employe  cast  off  by  the  trade. 
In  1355  an  ordinance  reads  that  "  if  any  serving  man  (jour- 
neyman) of  the  said  trade,  who  has  behaved  himself  well 
and  loyally  towards  his  master  whom  he  has  served  shall 
fall  sick  or  be  unable  to  help  and  maintain  himself,  he  shall 
be  found  by  the  good  folks  of  the  said  trade,  until  he  shall 
have  recovered  and  be  able  to  help  and  maintain  himself."  2 
At  times  the  master  was  called  upon  not  only  to  teach  the 
apprentice  his  trade  but  also  to  afford  him  further  educa- 
tional advantages.  In  1462  in  the  case  of  a  boy  appren- 
ticed to  a  haberdasher  at  fourteen  years  of  age  for  a  term  of 
twelve  years,  the  master  undertook  to  provide  him  with  two 
years  schooling.3  Hours  of  work  were  fixed  by  the  guild. 
In  1482  the  leather  sellers,  for  instance,  set  forth  that 
work  should  be  clone  only  between  six  in  the  morning  and 
six  at  night,  while  on  Saturdays,  vigils  and  festival  days, 
work  was  to  cease  at  three  o'clock.4  All  guild  members 
were  entitled  to  draw  from  a  mutual  benefit  fund  in  the 
case  of  real  need.  This  guild  chest  was  filled  with  the  fees 
charged  for  the  enrollment  of  apprentices  and  for  obtain- 
ing the  freedom  of  the  guild,  and  from  the  periodic  dues 
collected  from  masters  and  journeymen.  Even  when  the 
journeymen  lost  the  guild  franchise  and  probably  paid 
smaller  dues  and  fees  than  the  master,  apparently  the  guild 
chest  still  provided  them  and  the  apprentices  with  relief.8 
From  this  chest  the  wardens  distributed  money  for  burial, 
for  the  relief  of  poverty,  sickness,  old  age  and  unemploy- 
ment, and  for  the  support  of  distressed  willows  and  orphans 
of  the  guild.6  Loans  were  made  to  tide  members  over  a 
period  of  trade  depression  and  to  aid  apprentices  who  were 
trying  to  establish  themselves  in  business  or  find  employ- 


8  THE   HUMAN   FACTOR   IN   INDUSTRY 

ment.7  The  Carpenters  of  London,  1333,  stipulated  also 
that  sick  members  should  receive  friendly  visits  from  the 
wardens,  besides  being  given  fourteen  pence  a  week.8 

Transition  from  Small  Workshop  to  Factory.  —  Though 
the  status  of  the  medieval  master  and  workman  was  dif- 
ferent, their  work  place  was  the  same,  their  common  inter- 
ests were  apparent,  and  provision  for  their  mutual  welfare 
was  the  natural  result.  While  the  so-called  industrial 
revolution  has  everywhere  carried  in  its  wake  a  nominal 
democracy,  the  loss  of  contact  between  employer  and 
employe  has  contributed  to  that  disparity  of  interest  be- 
tween them  which  limits  the  effectiveness  of  modern  in- 
dustrial organization.  But  even  in  the  beginning  of  machine 
industry  and  factory  life,  individual  employers  realized  the 
value  of  improving  the  conditions  of  their  employes  and  the 
methods  adopted  differed  little  from  modern  "  welfare 
work." 

Robert  Owen,  Father  of  Labor  Administration.  —  The 
real  father  of  labor  administration  was  Robert  Owen.  In 
1800,  he  took  over  the  management,  or  "  government  " 
as  he  called  it,  of  New  Lanark,  a  cotton  mill,  built  in  1784, 
and  employed  some  1800  or  2000  persons  including  about 
500  children,  a  "  collection  of  the  most  ignorant  and  desti- 
tute from  all  parts  of  Scotland,  possessing  the  usual  char- 
acteristics of  poverty  and  ignorance."  9  By  1812  he  wrote 
that  the  same  population  "  had  now  become  conspicuously 
honest,  industrious,  sober  and  orderly,  and  that  an  idle 
individual,  one  in  liquor,  or  a  thief,  is  scarcely  to  be  seen  from 
the  beginning  to  the  end  of  the  year." 

Robert  Owen's  policy  was  paternalistic  and  inquisitorial. 
No  phase  of  his  employe's  mode  of  life  escaped  his  inspec- 
tion and  regulation.  One  of  his  first  acts  was  to  enlarge, 
repair  and  rebuild  the  houses  in  the  village.  A  rule  was 
made  by  which  every  tenant  was  required  to  clean  house 
once  a  week  and  whitewash  his  home  once  a  year  at  his  own 


INTRODUCTION  9 

expense.  He  amplified  the  village  water  supply,  cleansed 
the  streets  and  then  policed  them.  Other  "  welfare  " 
features  introduced  by  this  pioneer  were  voluntary  com- 
pany stores  at  which  better  goods  could  be  bought  than  in 
the  other  stores  of  the  village  and  at  a  reduction  of  some  25 
per  cent  in  price.  The  profits  from  this  store  supported 
the  "  Institution  for  the  Formation  of  Character,"  a  school 
for  children,  opened  in  1816.  The  school  building  was  used  as 
a  recreation  hall  for  adults  in  the  evening.  A  small  amount 
of  land  was  reserved  for  cultivation  by  the  mill  operatives. 
An  asylum  was  built  for  the  sick  and  aged.  A  savings 
bank  for  employes  received  deposits  of  £3000  in  1818.  In 
the  factory  no  child  under  10  was  employed.  In  1816  he 
reduced  working  hours  from  the  prevailing  14  hours  a  day 
to  12  hours  with  l\  hours  off  for  meals,  leaving  a  total  work 
day  of  lOf  hours. 

Other  Pioneers.  —  Robert  Owen  was  not  alone  in  his 
pioneer  work.  One  of  the  most  ambitious  of  these  early 
efforts  is  told  about  in  Homer's  Report  of  1845.  An  English 
company,  employing  854  hands,  supported  not  only  a  daily 
school  for  factory  children  and  the  children  of  their  employes, 
but  employed  a  surgeon  at  the  factory  daily  between  12  and  1 
o'clock,  who  also  made  home  visits  and  distributed  hospital 
tickets.  There  were  a  library  ;  a  brass  band  with  an  instructor 
(paid  by  the  pupils) ;  a  voluntary  savings  bank,  receiving  sums 
of  from  Qd.  to  5s.  every  Saturday,  and  paying  5  per  cent 
interest  "on  undisturbed  accumulation  of  six  months"; 
a  sick  relief  fund,  consisting  of  the  fines  exacted  from  em- 
ployes; festival  meetings  and  an  annual  picnic;  and  a 
fire  brigade  with  monthly  practices.10 

Economy  of  this  Service  Recognized.  —  From  the  very 
start  this  work  was  found  to  pay.  Robert  Owen's  unprec- 
edented form  of  industrial  government  resulted  in  a  profit 
of  about  £10,000  a  year  from  1800  to  1830,  after  paying 
£7000  in  unearned  wages  when  the  factory  was  shut  down 


10  THE  HUMAN  FACTOR  IN   INDUSTRY 

in  1807,  and  meeting  the  expense  of  benevolences.  This 
was  an  average  of  1\  per  cent  return  on  the  £130,000  capital 
investment.11  Some  of  this  profit  would  seem  to  have 
been  illegitimate,  since  Owen  paid  a  lower  average  weekly 
wage  than  was  common  in  similar  establishments. 

The  third  of  Owen's  essays  on  "  A  New  View  of  Society," 
published  in  1816,  appeals  "  to  manufacturers  and  other 
employers  of  labor,  in  their  own  interests  no  less  than  those 
of  the  nation  at  large  "  to  follow  his  example.  He  points 
out  the  economy  of  caring  for  the  plant  machinery  and  wrote 
that: 

If  due  care  as  to  the  state  of  your  inanimate  machines  can  pro- 
duce such  beneficial  results,  what  may  not  be  expected  if  you  devote 
equal  attention  to  your  vital  machines,  who  are  much  more  wonder- 
fully constructed  ?  .  .  .  From  experience  which  cannot  deceive  me, 
I  venture  to  assure  you  that  your  time  and  money  so  applied,  if 
directed  by  a  true  knowledge  of  the  subject,  would  return  not  five, 
ten  or  fifteen  per  cent  for  your  capital  so  expended,  but  often  fifty 
and  in  many  cases  one  hundred  per  cent.9 

So  one  of  the  earliest  experimenters  in  "  welfare  work  " 
discovered  that  it  paid. 

Labor  Administration  on  the  Continent.  —  English  em- 
ployers' efforts  to  improve  the  condition  of  their  employes 
probably  did  not  antedate  similar  ones  on  the  Continent. 
In  France  the  Blanzy  mining  company  began  building  houses 
for  their  employes  and  charging  small  rents,  in  1834. 12 
Messrs.  Schneider  and  Company,  proprietors  of  the  Creusot 
Steel  Works,  established  a  provident  fund  in  1837,  and  be- 
tween 1837  and  1899  advanced  building  loans  to  over  two 
thousand  workmen.13  In  1838  the  Maison  Leclaire, 
famed  for  its  early  profit  sharing  system,  contributed  one 
fourth  of  its  profits  to  an  employes'  mutual  aid  society.14 
It  is  interesting  to  note  here  too  that  Edme-Jean  Leclaire 
attributed  his  fortune  of  1,200,000  francs  to  the  economy 
of  profit  sharing. 


INTRODUCTION  11 

On  the  Continent  the  various  relief  funds  of  the  guilds 
and  mutual  benefit  societies  were  the  earliest  to  be  trans- 
formed into  systematic  insurance  of  employes  supported 
in  part  by  employers.  In  1839  the  Liege  Mutual  Insurance 
Fund  was  formed  by  25  mining  companies  to  provide  for 
accident  insurance  partly  at  the  employes'  expense.  The 
system  extended  rapidly  through  other  Belgian  mining 
districts.15  The  Essen  Steel  Works  in  Germany  started  a 
sick  and  burial  fund  in  1853,  and  soon  incorporated  with  it  a 
pension  fund.  A  fund  for  the  relief  of  sickness  at  home  was 
endowed  in  1879,  a  hospital  for  employes  in  1872,  and  a 
life  insurance  company  in  1877.  The  welfare  institutions 
of  the  Krupp  firm  developed  so  rapidly  that  their  descrip- 
tion in  1898  nearly  filled  a  three  hundred  octavo  page  book, 
and  in  scope  they  have  preceded  any  similar  undertaking.15 

Early  Labor  Administration  in  America.  — In  the  United 
States  the  Lowell  Textile  factories  began  their  paternal 
care  of  the  factory  girls  in  the  early  thirties,  with  board- 
ing houses,  company  churches,  company  stores  and  corpora- 
tion schools  which  children  under  fourteen  years  of  age 
had  to  attend  for  three  months  every  year.16  Minute 
rules  of  conduct  were  enforced  in  and  out  of  working  hours. 
In  some  cases  sick  funds  were  made  up  from  weekly  de- 
ductions of  a  few  cents  from  each  operative's  wage.  Some 
firms  paid  a  physician  to  come  once  a  month  to  the  factory 
counting-room  to  vaccinate  employes  free  of  charge.17  Im- 
provement circles  and  the  operatives'  magazine,  the  Lowell 
Offering,  first  proposed  in  1837,  originated  with  the  girls 
themselves,18  though  the  other  welfare  features  were  se- 
verely paternalistic. 

But  the  glowing  colors  in  which  Lucy  Larcom,  Harriet 
Robinson  and  other  "litterateurs"  of  the  Lowell  factory 
painted  their  "alma  mater"  when  writing  for  the  Offer- 
ing  were  probably  exaggerated.  To  secure  operatives 
"a  long,  low  black  wagon"  cruised  New  England,  whose 


12  THE  HUMAN  FACTOR  IN  INDUSTRY 

driver  was  paid  "  a  dollar  a  head  "  for  each  recruit  "  and 
more  in  proportion  to  the  distance,"  so  that  girls  were 
brought  from  too  far  away  to  enable  any  easy  return  home 
—  thus  alleged  the  Cabotville  Chronicle  in  184G.  It  further 
claimed  that  conditions  of  work  and  wages  were  misrepre- 
sented to  make  it  appear  that  Lowell  factory  girls  "  could 
dress  in  silks  and  spend  half  their  time  reading."  19  It  is 
probable,  however,  that  a  resident  of  Walden,  New  York, 
was  not  drawing  entirely  on  his  partisan  imagination  when 
he  wrote  to  Niles  Register,  a  protectionist  paper,  in  1827, 
that  "  it  has  become  quite  fashionable  in  this  part  of  the 
country  to  seek  the  comfort  and  well  being  of  the  people 
employed  in  manufacturing  establishments." 20  He  con- 
cluded his  letter :  "  Sir,  a  well  regulated  manufacturing 
establishment  in  this  country  is  a  real  boarding  school  for 
young  women  between  the  ages  of  twelve  and  twenty,  taken 
as  they  are  from  the  poor  and  less  productive  class,  and  from 
solitary  kitchen  service ;  and  since  the  introduction  of  the 
power  loom  they  compose  a  large  proportion  of  the  persons 
employed." 

The  welfare  work  at  Lowell  seems  not  to  have  been  so 
much  the  result  of  far-sighted  economy  or  of  democratic 
sympathies  on  the  part  of  the  employers,  but  rather  of  the 
necessity  for  attracting  workers.  Lowell  employers  seem 
to  have  shown  no  great  anxiety  to  retain  their  workers  after 
securing  them,  and  their  "  welfare  work  "  was  in  no  way 
comparable  to  that  existent  in  England  or  on  the  continent. 

The  New  Interest  in  Labor  Administration 

Labor  Administration  a  Profession.  —  It  seems  probable 
that  the  earliest  pioneers  in  welfare  work  were  actuated 
largely  by  philanthropic  motives.  To-day  fast  accumu- 
lating data  are  proving  the  importance  of  the  scientific  study 
of  the  human  element  in  industry,  and  labor  administration 


INTRODUCTION  13 

is  becoming  a  recognized  branch  of  production.  One  of 
the  first  signs  that  the  human  machine  was  beginning  to 
receive  the  systematic  attention  heretofore  given  only  to 
the  business  or  mechanics  of  production  was  the  introduction 
of  the  Efficiency  Engineer,  who  was  called  upon  to  supple- 
ment the  management  •  with  a  knowledge  of  the  technique 
of  production  in  its  relation  to  the  workers.  It  was  hoped 
that  he  would  coordinate  the  man  power  and  machine  power 
of  the  manufacturing  plant,  between  which  a  wasteful 
maladjustment  had  been  discovered.  Following  the  Effi- 
ciency Engineer  has  come  the  Employment  Manager,  who 
gives  his  time  to  the  hiring  and  discharging  of  employes 
and  methods  of  paying  or  promoting  them.  Both  have 
come  into  existence  since  the  beginning  of  the  century. 

College  Courses  in  Labor  Administration.  —  Handling 
the  working  force  of  a  plant,  caring  for  the  human  ma- 
chinery, is  fast  becoming  a  profession.  The  Amos  Tuck 
School  of  Administration  and  Finance  at  Dartmouth,  the 
University  of  Rochester,  the  School  of  Business  Administra- 
tion of  Harvard,  the  Wharton  School  of  Finance  of  the 
University  of  Pennsylvania,  the  College  of  Engineering  of 
Cornell  University  and  Columbia  University  all  offer  courses 
in  employment  management.  The  Buffalo  Chamber  of 
Commerce  proposes  a  College  of  Industrial  Engineering 
to  study  industrial  hygiene,  apprenticeship,  psychology, 
sociology,  and  administration.  During  the  war  several 
series  of  short  courses  for  employment  managers  were  given 
by  the  United  States  Department  of  Labor.  "Industrial 
Counselors  "  now  offer  professional  advice  on  problems 
of  personnel  management. 

Manufacturers'  Magazines  and  Associations.  —  The  re- 
cent development  of  magazines  dealing  with  the  problems 
of  plant  personnel  witness  the  rising  interest  in  this  subject. 
Factory,  Industrial  Management,  System,  t00%,  American  In- 
dustry,  and   the    Dodge    Idea,   among    others    have    been, 


14  THE  HUMAN  FACTOR  IN  INDUSTRY 

with  one  exception,*  established  since  1900.  They  form 
a  medium  for  the  exchange  of  ideas  not  only  on  technical 
and  mechanical  subjects,  but  on  all  the  problems  of  managing 
a  working  force.  There  are  also  the  new  organizations 
such  as  the  Employment  Managers'  Association,  the  National 
Safety  Council,  the  National  Association  of  Corporation 
Schools,  and  the  National  Society  for  the  Promotion  of  In- 
dustrial Education.  The  Bureau  of  Working  Conditions 
of  the  United  States  Department  of  Labor,  created  dur- 
ing the  last  year  of  the  war,  indicates  the  growing  emphasis 
laid  on  the  condition  of  the  working  force. f 

Reasons  for  the  New  Interest.  —  One  naturally  asks 
why  the  value  of  human  labor  has  been  more  appreciated 
in  the  past  decade  than  in  former  years  of  machine  industry. 
No  one  reason  can  be  given ;  but  undoubtedly  the  need  for 
more  rigid  economy  in  the  size  of  the  industrial  unit  and 
speeding  up  of  production  have  long  engrossed  the  attention 
of  industrial  managers,  but  experience  has  shown  that  these 
alone  will  not  successfully  meet  national  and  international 
competition. 

The  Efficiency  Movement.  —  The  term  "  industrial  ef- 
ficiency "  was  first  applied  to  the  human  factor  by  Dr. 
Arthur  Shadwell,  whose  study  of  industrial  methods  in 
England,  Germany,  and  America  appeared  in  part  in  the 
London  Times  in  1903. 

Frederick  Winslow  Taylor's  book  on  The  Principles  of 
Scientific  Management,  published  in  1911,  crystallized  the 
American  efficiency  movement  and  defined  it  to  mean  not 
only  stop-watch  methods  of  regulating  bodily  movements, 
but  to  include  the  careful  selection  of  men,  their  scientific 

*  The  progenitor  of  Industrial  Management,  Engineering  Magazine,  was 
first  published  in  1891. 

f  The  first  Employment" Managers'  Association  was  founded  in  1912,  the 
National  Association  for  Corporation  Schools  in  1913,  the  National  Safety 
Council  in  1912,  the  National  Society  for  the  Promotion  of  Industrial  Edu- 
cation in  1907. 


INTRODUCTION  15 

education  and  development  and  an  intimate  friendly  co- 
operation between  the  management  and  the  men.  The 
efficiency  movement,  as  it  developed,  emphasized  the  neces- 
sity for  an  ample  supply  of  air,  light  and  rest  periods,  economy 
of  motion,  a  cash  incentive  to  effort  in  the  shape  of  a  bonus, 
and  for  the  adaptation  of  physique  to  work.  But  it  failed 
to  provide  the  more  indefinite  and  basic  elements  which 
comprise  the  highest  type  of  efficiency  in  a  working  force, 
namely,  interest  and  stability.  It  ignored  also  the  need  felt 
by  employes  for  democratic  labor  organization. 

Discovery  of  the  Extent  of  Labor  Turnover.  —  The 
study  of  the  worker  in  industry  has  drawn  attention  to  the 
large  prevalent  labor  turnover,  and  the  cost  of  this  insta- 
bility in  a  working  force.  Definitions  of  labor  turnover* 
and  methods  of  computing  it  are  numerous  and  varied. 
The  United  States  Department  of  Labor  defines  it  as  the 
"  number  of  separations  from  service  dining  a  given  period."-1 
Whatever  the  precise  definition,  labor  turnover  is  the  re- 
verse side  of  the  problem  of  unemployment,  and  from  the 
standpoint  of  industry  rather  than  worker  it  is  a  measure  of 
unstabilized  production  and  of  the  maladjustment  between 
the  requirements  of  industry  and  worker.  It  is  one  of  the 
first  symptoms,  as  well  as  contributory  causes  of  the  Loss 
of  human  values  in  industry,  to  attract  widespread  at- 
tention. 

In  1912  a  study  of  twelve  metal  manufacturing  com- 
panies in  the  United  States,  with  from  less  than  300  to  more 
than  10,000  employes,  of  all  grades  of  skill,  revealed  the 
following  facts:  with  a  total  increase  in  the  working  force 
during  the  year  of  6697  employes,   these  companies   hired 

*  It  is  interesting  to  oote  tin'  possible  origin  of  the  term  "Labor  Turn- 
over."  In  the  medieval  guild,  the  number  oi  apprentices  <>r  journeymen 
any  our  master  might  employ  was  strictly  limited  by  statute,  hut  some- 
times a  master  in  need  <>f  extra  help  secretly  boughl  over  the  apprentices 
of  a  less  busy  craftsman,  This  process  was  called  "turning  over"  an  ap- 
prentice.22 


16  THE  HUMAN  FACTOR  IN  INDUSTRY 

42,571,  or  six  and  one  third  times  as  many  as  were  needed  to 
meet  the  increase.  Of  these  72.8  per  cent  had  never  before 
been  engaged  by  any  one  of  the  companies.  These  indus- 
tries thus  lost  during  the  year  35,874  employes,  while  at  the 
end  of  the  year  they  were  employing  only  a  total  of  43,971. 23 
These  were  the  first  data  procured  to  show  the  degree  and 
extent  of  labor  turnover  which  was  found  to  be  peculiar 
to  no  one  part  of  the  United  States  and  to  exist  likewise 
in  Austria,  England,  France,  and  Germany. 

Cost  of  Labor  Turnover.  —  This  constant  flow  from  one 
factory  to  another  does  not  benefit  the  greater  number  that 
change.  It  undermines  the  morals  of  the  working  force 
and  lessens  general  productivity.  The  cost  is  borne  by 
employe,  employer,  and  community,  and  cannot  be  ac- 
curately reduced  to  dollars  and  cents. 

Causes  of  Labor  Turnover.  —  Although  as  old  as  indus- 
try itself,  labor  turnover  has  probably  increased  rapidly 
in  the  past  few  decades.  This  is  not  due  to  a  shortage  in 
labor  but  rather  to  the  increasing  subdivision  of  labor 
processes,  which  has  made  work  more  monotonous  and 
transition  from  one  occupation  to  another  more  easy. 
Traveling  from  place  to  place  has  become  a  simple  matter 
of  hours  instead  of  days,  or  days  instead  of  months.  News- 
papers and  other  advertising  channels  carry  the  news  of 
positions  or  opportunities  for  advancement  in  industries 
in  different  localities.  The  less  skilled  worker,  discon- 
tented with  his  monotonous  task,  anxious  for  more  wages, 
more  leisure  time,  or  change  at  all  costs,  assumes  almost  a 
nomadic  existence. 

Employers  promote  this  migratory  condition  by  compet- 
ing instead  of  cooperating  in  their  efforts  to  secure  workers. 
They  go  far  afield  in  advertising  and  scouting  for  labor  and 
then  seldom  make  it  worth  while  for  the  worker  to  remain 
in  their  employ  by  carefully  selecting,  placing,  and  train- 
ing him  to  fit  the  job  and  rewarding  his  resulting  efficiency. 


INTRODUCTION  17 

Then,  too,  unsatisfactory  working  conditions  and  the  em- 
ployer's habit  of  laying  off  workers  in  accordance  with 
market  fluctuations  combine  to  increase  restlessness  among 
the  working  force. 

To  increase  efficiency  in  production  —  to  check  this 
constant  flux  of  incoming  and  outgoing  employes,  to  at- 
tract, stabilize,  and  enlist  the  cooperation  of  their  working 
force,  employers  are  compelled  to  recognize  and  to  treat 
the  individual  working  unit  as  a  human  being  and  not  as  a 
cog  in  a  machine.  So  the  discovery  of  the  cost  of  labor 
turnover  is  one  of  the  prime  causes  of  employers'  renewed 
interest  in  their  employes. 

Effect  of  Organized  Labor  and  Legislation.  —  But  other 
forces  besides  motives  of  economy  have  contributed  to  the 
move  to  humanize  industry.  Where  the  contact  between 
master  and  workman  has  ceased  to  exist,  the  working  class 
has  drawn  together,  conscious  of  its  needs  and  demanding 
a  more  equitable  distribution  of  the  profits  of  industry. 
Many  of  the  voluntary  improvements  made  by  employers 
in  working  conditions  arc  in  tacit  recognition  of  the  power 
of  organized  labor,  and  an  attempt  to  allay  discontent 
and  to  forestall  agitation  and  union  activity.  But  more 
important  than  any  forced  shortening  of  hours  or  increased 
pay  is  the  revolutionary  attitude  toward  the  labor  factor 
in  industry  which  the  unions  have  brought  about.  Public 
opinion,  crystallized  into  legislation,  has  forced  employers 
to  improve  working  conditions.  This  is  evident,  for  instance, 
in  the  effect  which  the  Railroad  Liability  Act  (1911)  had  on 
the  reduction  of  railroad  employes'  accidents.  This  act  made 
such  accidents  extremely  costly  to  the  railroad  companies  and 
whereas  in  1910,  2.17  railroad  employes  out  of  every  thou- 
sand men  employed  were  killed  while  on  duty,  in  L916  this 
number  was  only  1.17,  a  decrease  of  47  per  cent.-1 

Influence  of  the  New  Type  of  Man  in  Industry.  —  One 
other  factor  which  has  accelerated  the  voluntary  changing 


18  THE   HUMAN   FACTOR   IN    INDUSTRY 

of  the  conditions  of  work  by  employers  is  the  advent  of  a 
new  type  of  industrial  manager  within  the  past  quarter  of  a 
century.  Twenty-five  years  ago  the  professions  monopo- 
lized the  college  graduate.  To-day  a  college  training  is  a 
prerequisite  for  any  executive  position  in  many  large  com- 
panies. Large  scale  industry  now  absorbs  the  best  energies 
of  brain  as  well  as  of  hand  so  that  industrial  sciences  and  pro- 
fessions compete  with  others  in  the  type  of  man  they  are 
attracting.  This  means  a  broadened  and  more  scientific 
point  of  view  brought  to  bear  on  all  the  problems  of  indus- 
trial organization. 

Scope  of  Problems  of  Labor  Administration.  —  The 
need  for  economy,  the  demands  of  organized  labor,  the 
enactment  of  labor  legislation,  and  the  education  of  em- 
ployers have  within  recent  years  combined  to  give  a  new 
significance  to  the  problems  of  labor  administration  which 
have  to  do  with,  —  obtaining  and  holding  the  employes,  — 
technical  training,  education,  and  promotion,  —  methods 
of  remuneration,  and  of  providing  savings  and  loan  facilities 
with  insurance  against  accident,  sickness,  old  age,  and  death, 
—  the  length  of  the  working  hours,  —  the  work  environ- 
ment, —  medical  supervision,  —  opportunities  for  recrea- 
tion and  self-development  on  the  factory  premises,  —  and 
housing  and  living  conditions. 

Now  an  International  Experiment.  —  To-day  American 
manufacturers  have  surpassed  other  employers  in  their 
efforts  to  attract  and  hold  their  employes.  In  1918  the 
South  Manchuria  Railway  Company,  employing  37,000 
Japanese  and  Chinese,  sent  the  head  of  its  welfare  depart- 
ment to  the  United  States  to  stud}'  American  employers' 
welfare  service.25  But  labor  administration  is  peculiar  to 
no  country;  it  is  an  international  experiment.  The  Com- 
mercial Press  of  Shanghai,  China,  provides  for  the  recreation, 
education,  pensioning,  housing,  and  medical  care  of  its 
14,000   employes.26    The   Manchuria   Railway    Company's 


INTRODUCTION  19 

Welfare  Department  requires  twelve  officers  to  carry  out 
its  work.  Profit  sharing  in  various  forms  exists  in  France, 
Great  Britain,  Germany,  the  United  States,  Switzerland, 
Austria,  Hungary,  Belgium,  Holland,  Italy,  Scandinavia, 
Russia,  Spain,  and  Portugal.27  Welfare  institutions  on  a 
gigantic  scale  were  developed  by  the  Krupp  Works  in  Ger- 
many. But  England,  with  its  Bournville,  York,  and  Port 
Sunlight,  and  the  United  States  with  the  manifold  activities 
of  many  corporations,  are  close  competitors. 

As  industry  grows  and  manufacturing  processes  are  im- 
proved, systematic  labor  administration  will  become  more 
general  in  so  far  as  it  is  found  to  be  productive.  No  matter 
what  the  future  may  hold,  whether  it  may  bring  great, 
perhaps  fundamental  changes  in  the  control  of  capital  and 
the  management  of  industry,  these  experiments  in  method 
will  prove  to  be  of  value.  Irrespective  of  ownership  or  the 
division  of  product  among  the  factors  of  production,  the 
problems  of  making  more  and  better  goods  will  go  on.  As 
long  as  it  does,  the  question  of  making  each  worker  and  each 
hour  of  work  as  effective  as  possible  will  exist.  To  sum- 
marize the  results  of  the  various  methods  of  labor  adminis- 
tration to  date,  to  suggest  lines  of  future  development,  may 
prove  helpful  to  those  on  whom  rest  or  will  rest  the  manage- 
ment of  production. 


CHAPTER  II 
HIRING  AND  HOLDING 

Current  Disregard  of  Employment  Methods.  —  Before 
the  war,  when  a  textile  manufacturer  in  Massachusetts 
was  perhaps  buying  his  wool  in  Leicestershire,  his  dyes  in 
Germany  and  his  machinery  in  Pennsylvania,  he  was  prob- 
ably waiting  to  "  buy  "  the  first  chance  applicant  at  the 
factory  door  to  fill  the  vacancy  in  his  working  force.  More- 
over, he  had  small  regard  for  placing  the  applicant  where 
both  the  worker  and  the  industry  would  profit  most  from  his 
labor ;  nor  did  he  make  real  effort  to  retain  his  services, 
once  secured,  beyond  offering  him  the  regular,  impersonal 
wage  payment  of  the  purchasing  price  of  his  class  of  labor. 
Such  is  the  average  employer's  careless  attitude  toward 
his  "  human  machinery." 

Prevalence  of  Industrial  Misfit.  —  Current  labor  turn- 
over figures,  both  before  and  during  the  war,  have  revealed 
in  part  the  absurdity  of  the  assumption  that  any  particular 
industry,  without  conscious  effort,  attracts  and  holds  in 
its  employ  those  workers  best  fitted  for  it.  The  physical, 
mental,  and  temperamental  fitness  of  each  employe  for 
the  work  which  he  is  to  do  contributes  to  the  development 
of  a  contented,  effective  working  force,  with  a  tendency 
toward  stability.  Such  a  condition  of  mutual  satisfaction 
is  obviously  not  prevalent  in  industry  to-day,  and  it  is  one 
of  the  basic  difficulties,  that  of  obtaining  and  retaining  the 
worker  best  fitted  for  the  work  to  be  done,  which  consti- 
tutes the  employment  problem. 

20 


HIRING  AND  HOLDING  21 

Sources  of  Labor  Supply.  —  There  are  four  phases  in 
employment,  namely:  securing,  selecting,  inducting,  and 
retaining  efficient  workers.  Choice  predicates  quantity 
from  which  to  choose  and  few  employers  can  rely  solely 
on  the  "  peddlers  "  of  labor  who  come  to  their  doors  to 
provide  them  with  the  necessary  quantity  and  quality  of 
applicants  for  employment.  A  systematic  effort  to  secure 
applicants  is  usually  essential.  But  there  are  sources  of 
supply  within  as  well  as  without  the  plant.  A  position  may 
be  filled  by  transferring  or  promoting  a  present  employe 
as  well  as  by  hiring  a  new  one,  and  with  greater  assurance 
of  success,  in  that  such  a  selection  is  based  on  a  knowledge 
of  the  worker's  capacity.  Opening  avenues  for  promotion 
and  transfer  creates  an  invaluable  source  of  labor  supply. 

Job  Analysis  Selection.  —  After  an  adequate  choice 
has  been  made  possible  and  after  analyses  have  been  made 
of  the  individual  equipment  which  makes  for  success  in  the 
work  to  be  done,  it  remains  equally  important  to  develop 
reliable  methods  for  discovering  the  applicant  whose  prob- 
ability of  success  is  highest.  Various  methods  have  been 
suggested  and  a  few  have  proven  their  value.  Interviews, 
examinations,  —  mental  and  physical,  —  investigations  of 
references,  studies  of  personality  and  previous  experience, 
all  play  a  part  in  the  process  of  selection. 

Induction.  —  When  the  applicant  has  been  chosen  the 
next  step  is  to  secure  his  active  cooperation  and  to  fit  him 
into  the  business  organization  of  which  he  is  to  be  a  part. 
His  duties  must  be  explained,  his  superior's  interest  in  him 
developed,  and  he  must  be  trained  to  become  an  integral 
part  of  the  industry.  This  necessitates  "  following  up  " 
the  new  employe  to  see  that  he  fits  his  job  and  that  the  job 
fits  him.  If  he  has  been  placed  in  the  wrong  niche  and  his 
discontinuance  is  contemplated,  at  his  own  or  his  superior's 
suggestion,  it  may  still  be  possible  to  find  another  place  in 
the   organization    which  will    better   tit    both  his  and   the 


22  THE  HUMAN  FACTOR  IN   INDUSTRY 

industry's  needs.  Conference  and  explanation  may  re- 
move difficulties  and  grievances,  and  as  a  result  a  successful 
workman  be  developed  from  an  apparent  failure. 

Development.  —  Retaining  efficient  workers  involves  the 
necessity  of  promoting  an  employe  as  fast  as  his  ability  war- 
rants. The  recognition  of  ability  helps  to  produce  a  satis- 
fied plant  personnel  and  an  indispensable  esprit  de  corps. 
Establishing  a  careful  policy  of  promotion  makes  of  the 
employe's  personal  ambition  "  a  centripetal  instead  of  a 
centrifugal  force  "  in  the  industry. 

The  Employment  Machinery 

Foreman  as  Employment  Manager.  —  From  the  ver- 
satile master  of  the  small  workshop  —  buyer,  workman, 
and  seller  —  has  descended  the  modern  foreman  of  the  large 
scale  industry.  But  with  the  growing  intricacy  of  super- 
vising machine  production  the  foreman  has  been  gradually 
relieved  of  most  functions  of  general  management  and  his 
attention  confined  to  the  actual  process  of  production.  Al- 
though the  organization  of  industry  has  been  divided  and 
subdivided  and  specialists  have  assumed  many  of  the  varied 
functions  of  the  early  master  workman,  still  the  complex 
and  special  function  of  finding  and  placing  workers  rests  on 
the  foreman's  shoulders. 

Complex  Duties.  —  Consider  the  duties  of  the  foreman 
in  some  shops  as  outlined  by  Mr.  Fisher :  They  set  speeds 
and  depths  of  cut,  decide  on  the  best  angles  and  shapes  of 
tools,  the  best  cooling  agents,  the  kind  of  steel  to  use,  set 
piece  rates,  route  the  work  in  the  department,  keep  data 
on  idle  equipment  time,  act  as  stock  chasers,  adjust  differ- 
ences as  to  wages,  break  in  new  men,  and  discipline  and 
discharge  insubordinate  and  incompetent  men.1  Un- 
questionably the  foreman  must  be  relieved  of  the  duty  of 
hiring  and  firing  men  if  the  human  factor  in  industry  is  to 
receive  due  attention. 


HIRING  AND  HOLDING  23 

Lack  of  Judgment.  —  Moreover,  though  technically 
skilled,  the  usual  foreman  has  risen  from  the  ranks  and  is 
not  apt  to  have  the  power  of  judging  men  as  well  as  ma- 
chinery. Besides  being  too  busy,  he  is  too  close  to  the 
work  to  get  a  proper  perspective  of  its  requirements.  The 
selection  of  workers  in  his  hands  is  apt  to  become  a  matter 
of  personal,  prejudiced  likes  and  dislikes. 

Job  Selling.  —  Not  only  is  this  true  but,  where  the  fore- 
man hires,  the  danger  of  "job  selling  "  is  always  present, 
and  if  carried  on  it  is  certain  to  produce  a  mediocre,  dis- 
contented working  force.  This  is  especially  difficult  to 
avoid  where  non-English-speaking  groups  are  dealt  with, 
if  the  employment  function  is  not  centralized.  In  Ohio 
in  1916,  the  Industrial  Commission  found  "  job  selling  " 
carried  on  in  at  least  six  large  industrial  plants  in  the  State, 
employing  approximately  40,000  men.  The  price  of  a  job 
varied  from  $5  to  $30,  and  the  money  was  sometimes  pocketed 
by  the  foreman  alone,  sometimes  divided  between  the  fore- 
man and  one  or  two  sub-foremen.2  This  practice  is  fre- 
quently accompanied  by  bribing  for  promotion  and  oc- 
casionally by  dummy  names  on  the  pay  roll,  whose  pay 
envelopes  reach  the  foreman's  pocket. 

Absence  of  Cooperation.  —  But  even  with  foremen  of 
the  best  intentions,  the  selection  of  employes  is  inevitably 
a  hit  and  miss  process.  Then,  too,  there  is  an  unavoidable 
lack  of  cooperation  between  department  heads  in  the  matter 
of  transferring  men  when  they  have  been  wrongly  placed 
or  must  be  laid  off.  A  large  steel  corporation  is  reported 
to  have  advertised  recently  for  seven  hundred  common 
laborers  and  to  have  laid  off  one  thousand  in  another  de- 
partment on  the  same  day.  Employment  is  essentially  a 
plant  and  not  a  departmental  problem. 

Centralized  Employment  Department.  —  The  brief  state- 
ment of  the  problems  involved  in  securing  and  holding  an 


24  THE  HUMAN  FACTOR  IN  INDUSTRY 

efficient  working  force  reveals  the  futility  of  leaving  its 
execution  to  the  detached  foreman.     They  include : 

(1)  Mobilizing  the  sources  of  labor  supply  within  and 
without  the  plant ; 

(2)  Analyzing  and  classifying  the  requirements  of  the  jobs 
of  the  entire  plant ; 

(3)  Selecting  and  placing  applicants  for  work  according 
to  their  physical,  mental,  and  temperamental  fitness  for 
the  specific  job; 

(4)  Inducting  and  "  following  up "  the  new  employe 
until  adjustment  is  complete ; 

(5)  Retaining  and  developing  the  old  employe. 

The  appreciation  of  the  value  of  such  a  broad  program 
indicates  perhaps  most  clearly  the  need  of  a  centralized 
employment  bureau  with  officers  of  special  ability  and  pro- 
fessional training. 

Its  Recent  Growth.  —  But  the  centralized  employment 
bureau,  which  relieves  the  foreman  of  responsibility  and 
makes  methods  of  hiring  and  firing  uniform  throughout 
the  plant,  is  rare.  In  1915  a  canvass  of  twelve  business  houses 
lying  along  twenty  squares  of  a  street  in  the  Philadelphia 
textile  district,  showed  that  eight  left  hiring  and  firing  ab- 
solutely to  the  foremen,  three  gave  a  superintendent  slight 
supervisory  powers,  if  the  foreman  was  inefficient,  while  in 
one,  the  head  of  the  firm  did  the  hiring.3  Even  in  the 
larger  industries  which  have  now  decided  that  employment 
requires  the  special  direction  of  an  employment  department, 
its  development  is  of  recent  growth.  An  investigation  cover- 
ing thirty-seven  large  New  England  firms  showed  that  few 
have  had  such  a  department  for  more  than  five  or  six 
years ;  one  department  was  sixteen  years  old,  two  were  nine 
years  old,  and  as  yet  twelve  had  none.4  Though  of  recent 
origin,  this  specialization  of  the  function  of  employment  is 
extending  rapidly  and  more  and  more  progressive  firms  are 
adopting  it. 


HIRING  AND  HOLDING  25 

Objections  to  It.  —  It  may  be  argued  that  a  small  in- 
dustry cannot  afford  an  employment  department  and  that 
even  in  the  larger  industry,  while  it  may  be  needed  in  times 
of  labor  scarcity,  it  is  not  warranted  in  a  time  of  business 
depression  or  in  slack  seasons.  As  Mr.  Feiss  says,  however : 
"  While  a  very  small  organization  may  not  be  able  to  afford 
even  one  person  whose  sole  function  is  the  business  of  employ- 
ment, this  activity  should  nevertheless  be  recognized  as  a 
separate  and  most  important  function,  and  in  such  cases 
administered  by  the  manager  or  assistant  manager  himself."  5 
It  should  be  borne  in  mind,  too,  in  answer  to  the  second  ob- 
jection, that  in  a  time  of  slack  work  all  unavoidable  laying- 
off  should  be  done  with  the  needs  —  present  and  future  — 
of  the  entire  plant  in  mind,  rather  than  of  the  separate  de- 
partment. The  employment  bureau  should  pool  the  labor 
reserve  of  the  plant  and  thus  greatly  reduce  the  costly  turn- 
over. A  period  of  slack  work,  moreover,  admits  of  extended 
transfer  and  training  of  employes  in  different  processes, 
thereby  laying  the  foundation  for  a  more  efficient  and  in- 
telligently cooperative  working  force. 

Economy  of  Centralized  Bureau  in  Reducing  Turnover. 
—  The  economy  of  installing  employment  departments  is 
already  apparent.  The  Dennison  Manufacturing  Com- 
pany found  that  during  the  first  two  years  of  their  employ- 
ment department,  a  reduced  turnover  *  had  netted  them  a 
saving  of  $25,000,  charging  $50  to  the  cost  of  replacing  each 
experienced  hand.6  The  Curtis  Publishing  Company  esti- 
mated that,  in  one  year  after  the  introduction  of  a  cen- 
tralized employment  bureau,  there  had  been  a  saving  of  $90 
per  person  "landed  on  the  books,"  because  the  applicant 
accepted  was  almost  sure  to  "  make  good."  7  In  1914, 
the  Ford  Motor  Company  introduced  the  centralized  em- 
ployment bureau.  The  policy  of  the  bureau  is  to  transfer 
a  man  as  many  as  six  or  eight  times  until  a  place  is  found 

*  For  dcfiiiition  of  labor  turnover,  sec  page  15. 


26  THE  HUMAN   FACTOR  IN  INDUSTRY 

where  he  can  do  the  work  and  earn  his  $5  a  day.  This  policy 
reduced  the  discharges  from  8390  in  1913  to  27  in  1915.8 

The  Hayes  Manufacturing  Company  of  Detroit  cut  their 
turnover  in  two  in  the  first  year  of  the  operation  of  an  em- 
ployment bureau,  and  in  the  next  four  months  the  turnover 
was  more  than  cut  in  two  again.  More  significant  even  is 
the  fact  that  this  reduction  was  accompanied  by  a  30 
per  cent  increase  in  output  per  man.9  The  Solvay  Com- 
pany of  Detroit  in  1916  had  an  employment  bureau  in  one 
of  its  two  plants,  the  Semet-Solvay  (Coke)  Company,  but 
not  in  the  Solvay  Process  Company  which  adjoined  it. 
The  latter  company  was  having  labor  difficulties,  and  to 
remedy  them,  the  employment  manager  of  the  Semet- 
Solvay  Company  took  over  the  hiring  and  firing  in  both 
plants,  beginning  May,  1916.  In  May  the  combined  average 
turnover  was  10  per  cent ;  in  June  the  turnover  dropped  to 
8.3  per  cent;  in  July  it  was  8  per  cent;  in  August,  4.1 
per  cent;  in  September,  3.3  per  cent;  in  October,  3  per 
cent;  in  November,  2.6  per  cent;  in  December,  2.4  per 
cent;  and  during  these  same  months  the  average  labor 
turnover  in  Detroit  "  was  jumping  up  by  leaps  and  bounds."  9 
Such  results  give  complete  evidence  of  the  value  of  cen- 
tralized employment  management. 

In  Relieving  Foremen  or  Officers  of  the  Firm. — The  em- 
ployment department  brings  with  it  an  additional  economy  in 
relieving  the  foreman  of  the  responsibility  of  hiring  and 
firing  and  allowing  him  to  devote  his  efforts  to  securing  the 
maximum  output.  An  even  greater  saving  is  effected  by 
introducing  a  centralized  employment  department  where 
the  interviewing  of  applicants  has  taken  the  time  of  mem- 
bers or  officers  of  a  firm  or  organization.  The  comptroller 
of  one  institution  where  an  employment  department  was 
established  said  that  he  was  thereby  saved  one  day  a  week, 
which,  since  he  received  a  salary  of  810,000  a  year,  was 
equivalent  to  a  SI 600  saving  in  the  time  of  one  man  alone.10 


HIRING  AND  HOLDING  27 

Centralized  Bureau  Not  as  Yet  General.  —  These  esti- 
mates are  suggestive,  but  a  measurement  in  dollars  and  cents 
of  the  value  of  an  employment  department  is  as  yet  scarcely 
practicable.  No  two  firms  estimate  their  turnover  costs 
alike,  and  employment  records  and  statistics  are  not  stand- 
ardized. The  work  is  in  an  experimental  stage.  The 
oldest  Employment  Managers'  Association  was  founded  in 
Boston  in  1912,  and  marks  the  beginning  of  employment 
management  as  a  recognized  profession.  Since  then,  like 
associations  have  been  formed  in  ten  of  the  largest  cities 
in  the  country  and  enroll  nearly  1000  firms.11  These  as- 
sociations have  as  yet  done  little  more  than  make  sug- 
gestions for  future  development,  few  members  having  any 
past  achievements  to  relate. 

Introduction  of  Employment  Bureau.  —  In  spite  of  the 
generally  accepted  theoretical  value  of  an  employment  de- 
partment and  its  indicated  practical  value,  certain  diffi- 
culties may  arise  in  its  introduction.  The  foreman,  or  other 
person  in  charge,  refuses  to  believe  that  he  is  not  the  best 
judge  of  the  man  for  his  own  work  and  resents  the  loss  of 
prestige  which  goes  with  the  power  of  hiring  and  firing. 
But  the  cooperation  and  interest  of  the  foremen  are  es- 
sential to  success.  Without  their  cooperation  it  is  impos- 
sible to  draw  up  job  specifications  and  make  adequate  pro- 
vision for  transferring  men  who  have  not  "  made  good  " 
in  one  department  to  another,  and  for  promoting  men, 
instead  of  bringing  men  from  outside  for  the  higher  posi- 
tions. 

To  gain  the  foremen's  support  it  has  been  found  best  in 
some  plants  to  ask  their  opinion  about  the  introduction 
of  an  employment  departmenl  rather  than  to  tell  them 
about  it  after  it  has  been  installed.  The  Fore  River  Ship- 
building Corporation  solved  the  problem  by  appointing  a 
committee  of  foremen,  mechanics,  and  office  men  who 
planned  the  bureau,  after  studying  the  plans  proposed  and 


28  THE   HUMAN  FACTOR  IN  INDUSTRY 

adopted  by  other  firms.12  One  large  firm  held  a  conference 
of  six  hundred  foremen  to  consult  with  an  expert  on  the 
various  problems  of  employment  and  management  of  the 
plant  personnel.13  Such  conferences  might  well  precede 
the  inauguration  of  an  employment  bureau.  Whatever 
difficulties  arise  can  be  easily  overcome  with  tact,  and  the 
result  will  certainly  warrant  the  effort  and  the  immediate 
cost. 

Securing  Applicants 

In  the  absence  of  a  thoroughly  organized  market,  the 
employment  manager  must  make  a  survey  of  the  sources 
of  supply  and  evaluate  the  possible  methods  of  obtaining 
applicants.  At  present,  vacancies  may  be  filled  from  among 
those 

(1)  applying  for  work  at  the  plant  or  by  mail ; 

(2)  recommended  by  present  employers  or  by  a  third 
person ; 

(3)  reached  by  advertising  in  newspapers,  circulars,  etc., 
or  by  scouting ; 

(4)  graduating  or  leaving  schools  ; 

(5)  registered  by  employment  agencies  ; 

(6)  recommended  for  promotion  and  transfer  within  the 
plant. 

Personal  Applications.  —  (1)  Investigation  indicates  that 
most  firms  rely  principally  on  the  newspaper  column  and 
the  "  peddler  "  of  labor  for  securing  their  employes.  In 
1911,  the  New  York  Commission  on  Employment  found 
that  out  of  seven  hundred  and  fifty  employers,  four  hundred 
and  fifty-eight,  or  over  GO  per  cent,  "  could  always  get  all 
the  help  they  wanted  and  practically  all  of  them  hired  their 
forces  from  people  who  made  personal  application  at  their 
plants  "  ;  two  hundred,  or  27  per  cent,  advertised  for  help  ; 
fifty  used  employment  agencies,  and  ten  depended  on  trade 


HIRING  AND  HOLDING  29 

unions.14  In  an  investigation  made  by  the  National  As- 
sociation of  Corporation  Schools,  nineteen  out  of  forty-one 
corporations  rarely  had  to  look  beyond  their  doors  for  appli- 
cants for  work.15 

The  old  "  want  shingle,"  with  the  "  peddling  "  of  labor, 
has  long  been  under  fire  from  the  standpoint  of  the  "  job- 
less man."  It  is  also  an  evil  from  the  standpoint  of  the 
"  manless  job."  The  man  who  is  out  of  work  and  offer- 
ing his  services  indiscriminately  is  apt  to  be  doing  so  be- 
cause he  is  not  the  most  efficient  applicant  obtainable. 
The  wasteful  system  of  "  peddling  "  his  labor  helps  to  keep 
him  so.  The  individual  firm  can  best  help  to  correct  this 
evil  by  protecting  itself  from  having  to  take  the  man  who 
happens  to  be  at  the  gate  when  a  vacancy  occurs. 

Application  Blanks.  —  The  need  for  additional  workers 
should  be  forestalled  as  far  as  possible  by  the  use  of  appli- 
cation blanks,  filed  and  classified  for  future  reference  Not 
only  should  all  applicants  coming  to  the  plant  fill  out  appli- 
cation blanks  to  go  on  file,  but  such  blanks  should  be  filled 
out  by  those  reached  through  other  channels  as  well.  Those 
who  send  letters  of  application  should  be  asked  to  come 
to  the  plant  to  fill  out  the  regular  blank,  or  when  this  is 
impossible,  blanks  can  be  sent  to  them.  The  development 
of  such  a  ipe  will  make  it  possible  to 

(a)  keep  a  selected  list  of  good  material  for  future  ref- 
erence ; 

(6)  attract  a  superior  class  of  men  who  arc  not  out  of 
work  but  are  looking  for  better  opportunities  and  can  wait 
for  an  opening ; 

(c)  postpone  the  engagement  in  order  to  dispel  the  first 
impression  made  by  the  applicant; 

(rf)   eliminate  floaters. 

The  Life  of  an  Application  Blank.  —  The  length  of  time 
for  which  an  application  blank  should  be  kept  varies  with 
the  condition  of  the  labor  market.     In  a  period  of  depres- 


30  THE  HUMAN  FACTOR  IN  INDUSTRY 

sion  and  unemployment  its  term  of  usefulness  will  be  longer 
than  in  a  period  of  industrial  activity  when  competition 
for  labor  is  keen  and  the  workers  nove  about  restlessly  in 
response  to  the  enticements  held  out  by  employers.  It 
will  vary  also  with  the  class  of  labor  involved,  the  unskilled 
manual  laborer  being  a  bird  of  passage,  gone  in  a  few  days  or 
weeks,  while  at  the  other  extreme  is  the  highly  skilled,  or 
technically  equipped,  or  executive  person,  who  is  more 
stable  and  may  be  available  for  several  years  after  the  first 
application  is  made.  Above  all,  this  variable  quantity  is 
affected  by  the  character  of  the  firm,  which,  if  it  offers  un- 
usually attractive  wages,  hours,  and  opportunities,  may 
draw  from  its  filed  application  blanks  correspondingly 
longer  than  other  firms.  In  the  case  of  the  Ford  Motor 
Company,  where  at  one  time  the  crowd  clamoring  for  work 
got  so  large  that  they  "  had  to  turn  the  hose  on  them  to 
keep  the  crowd  from  breaking  in  one  side  of  the  building," 
and  where  they  now  receive  between  2000  and  3000  appli- 
cations by  mail  every  day,  the  application  blank  becomes 
an  absolute  necessity.16  It  is  a  means  of  separating  the 
wheat  from  the  chaff  and  provides  an  almost  permanently 
useful  file.  The  life  of  the  application  blank  of  both  small 
and  large  employers  will  be  determined  by  these  same 
factors.  A  helpful  device  is  the  division  of  the  blanks  into 
a  "  live  "  and  a  "dead  "  file,  the  "live  "  being  kept  up  to 
date  by  weeding  out  all  applications  made  too  far  in  the 
past  to  be  dependable.  The  "dead  "  file  offers  a  last  resort 
if  the  "  live  "  file  fails.17 

Recommendations:  From  Employes.  —  (2)  In  ques- 
tioning some  thirty  firms  as  to  the  value  of  the  different 
methods  of  getting  applicants  for  work,  Mr.  Kelly  found  a 
general  agreement  about  those  recommended  by  employes. 
Twelve  firms  thought  them  the  most  important  source  of 
all  and  five  classed  them  as  very  important.  The  Cheney 
Company  encourages  its  employes  to  bring  in  friends  by 


HIRING  AND  HOLDING  31 

offering  a  cash  bonus  to  the  employe  if  his  friend  proves 
satisfactory.18  Joseph  and  Feiss  Company,  in  Cleveland, 
and  the  Dennison  Manufacturing  Company  use  this  source 
extensively.  It  works  well  in  a  foreign  labor  group  and 
especially  if  an  effort  is  being  made  to  secure  a  new  racial 
group.  It  is  at  all  times  a  stabilizing  force  in  the  personnel 
of  the  plant  and  if  careful  selective  methods  are  used  in  the 
first  place  the  employe's  friends  and  relatives  are  apt  to  be 
of  a  correspondingly  good  type. 

The  Curtis  Publishing  Company,  on  the  contrary,  will 
employ  no  one  who  has  a  relative  in  the  company  in  any 
capacity,19  probably  to  avoid  the  danger  of  favoritism  and 
of  antagonizing  employes  whose  relatives  cannot  be  accepted. 
But  if  the  employe  is  asked  to  fill  out  a  blank  stating  why  his 
friend  or  relative  is  desirable  and  giving  information  about 
his  work  and  employment,  the  employe's  feeling  of  responsi- 
bility for  the  friend's  or  relative's  success  greatly  reduces 
the  danger  of  his  suggesting  unsuitable  material.  Such 
blanks  are  sometimes  distributed  periodically  among  em- 
ployes. Moreover,  it  should  be  fully  understood  that  the 
qualifications  of  each  applicant  are  subject  to  the  impartial 
scrutiny  of  the  employment  manager. 

From  a  Third  Person.  —  Employing  persons  recommended 
by  a  third  person  other  than  an  employe  or  a  regular 
agency  is  coming  into  disfavor.  The  judgment  on  which 
such  a  recommendation  is  based  is  seldom  disinterested 
and  usually  made  without  adequate  knowledge  of  the  firm's 
needs.  An  employer  will  rarely  wish  to  rely  on  such  out- 
side judgment  of  his  needs.  Moreover,  partiality  toward 
this  class  of  applicant,  because  the  recommendation  is 
endorsed  by  an  officer  or  firm  member,  will  often  lead  to  dis- 
satisfaction among  employes.  An  exception  to  the  general 
rule  is  in  cases  where  a  number  of  employment  managers 
in  the  same  city  agree  to  exchange  the  names  of  desirable 
applicants   whose   services   they   cannot   immediately   use. 


32  THE   HUMAN  FACTOR  IN  INDUSTRY 

In  all  cases,  however,  the  recommendation  should  be  sub- 
ject to  the  review  of  the  employment  manager,  and  his  de- 
cision as  to  the  suitability  of  the  applicant  should  be  final. 

Advertising.  —  (3)  The  newspaper  "  want  ad,"  although 
subject  to  much  criticism,  holds  its  place  as  one  of  the  most 
common  methods  of  securing  applicants.  For  obtaining 
young  or  semi-skilled  workers,  it  is  perhaps  unequaled. 
Its  greatest  weakness  is  that  it  is  undiscriminating  and  con- 
sequently entails  considerable  expense  in  the  weeding  out 
of  "  undesirable  "  applicants.  The  total  amount  expended 
in  the  "  want  ad  "  columns  is  very  large.  In  New  York 
State  it  is  estimated  that  2000  newspapers  carry  yearly 
some  800,000  columns  of  "  help  wanted  "  advertisements 
at  a  cost  to  employers  and  employes  of  $20,000,000,  or  $5 
per  person  employed  in  the  State.20  Another  serious  diffi- 
culty is  that  when  advertising,  competing  employers  are 
tempted  to  offer  illusory  attractions,  which  result  in  a  futile 
interchange  of  employes  without  ensuing  benefit  to  em- 
ployers or  workers. 

Except  in  special  instances,  it  is  best  that  an  advertise- 
ment give  in  detail  the  different  positions  to  be  rilled,  with 
their  respective  duties,  hours,  etc.  The  more  exact  the 
statement,  the  fewer  will  be  the  applicants  who  appear  and 
the  more  nearly  will  those  applying  meet  the  requirements 
of  the  positions  to  be  filled.  Special  and  genuine  induce- 
ments, such  as  welfare  activities,  are  listed  by  some  com- 
panies to  advantage. 

"  Blind  "  or  "  Open."  —  There  is  much  disagreement  as 
to  the  relative  merits  of  the  "  blind  "  and  "  open  "  adver- 
tisement. Those  in  favor  of  the  former  claim  that  it  auto- 
matically eliminates  much  hopeless  material.  A  Curtis 
Publishing  Company  employment  manager  thinks  the 
"  only  redeeming  feature  "  of  the  "  open  "  advertisement 
is  the  rapidity  with  which  the  temporary  worker  may  be 
secured.21    But    the    "  blind "    advertisement    defeats  its 


HIRING  AND  HOLDING  33 

own  ends  because  it  does  not  attract  the  best  type  of  worker, 
the  one  who  is  employed.  He  wants  to  know  to  whom  he 
is  applying  for  work,  in  order  that  he  may  judge,  in  some 
measure  at  least,  the  truthfulness  of  the  advertisement 
and  the  possibility  of  improving  his  condition.  If  it  is 
used  as  a  means  of  detecting  an  employe's  disloyalty  or 
dissatisfaction  before  notice  is  given,  it  may  secure  the  in- 
formation desired,  but  will  in  all  probability  create  further 
dissatisfaction  among  the  employes  who  learn  it.  The 
"  blind  "  advertisement  may  be  necessary  when  a  person 
holding  a  responsible  position  is  to  be  replaced.  On  the 
whole,  however,  it  would  seem  that  all  the  advantages  of 
the  "  blind  "  advertisement  and  none  of  its  disadvantages 
can  be  secured  by  stating  in  an  "open  ad"  that  only  ap- 
plications in  writing  will  be  considered. 

Misleading  Advertisements.  —  Exaggerated  or  mislead- 
ing advertising  is  poor  policy.  If  a  large  number  of  appli- 
cants are  called  for  and  respond  and  only  a  small  number 
are  really  needed,  it  is  probable  that  those  who  do  not  se- 
cure positions  will  feel  that  they  have  not  been  fairly  con- 
sidered and  will  not  apply  on  another  occasion.  A  mu- 
nition plant  in  New  York  State  with  a  maximum  capacity 
for  about  two  hundred  and  fifty  workers,  advertised  for  a 
long  period  in  1017  for  one  thousand  women  with  S7  a  week 
guaranteed.  It  was  not  explained  in  the  advertisement 
that  the  $7  was  paid  for  only  two  weeks,  after  which  the 
worker  was  put  on  a  piecework  basis  which  brought  in  only 
$5  a  week.  The  loss  to  the  company  in  wasted  advertis- 
ing and  excessive  turnover  might  well  have  been  saved  by 
living  up  to  the  guarantee  al  least.  Another  New  York 
State  firm  advertised  in  the  same  year  in  near-by  cities  that 
the  transportation  of  new  employes  was  paid  in  advance 
without  stating  that  the  firm  proceeded  to  deduct  that 
expense  from  the  worker's  wages  and  refunded  it  only  if  he 
remained  longer  than  three  months.     In  some  states  ad- 

D 


34  THE   HUMAN   FACTOR  IN   INDUSTRY 

vertising  of  this  kind  is  illegal ;  in  all  it  is  unwise.  It  preju- 
dices the  employe  and  makes  it  difficult  for  honest  employers 
to  secure  proper  results  from  legitimate  advertising.  Al- 
though few  cases  of  fraudulent  advertising  are  reported 
by  the  victims,  in  one  year  the  Commissioner  of  Licenses 
in  New  York  investigated  two  hundred  and  ten  complaints.20 
Open,  honest,  detailed  advertising,  though  costly,  is  a 
successful  way  to  secure  workers.  Dishonest  advertising 
secures  the  worker  only  to  lose  him  again. 

"Positions  Wanted."  —  The  extent  to  which  the  "posi- 
tions wanted  "  columns  can  be  utilized  will  depend  in  large 
measure  on  the  grade  of  employe  sought  and  the  condition 
of  the  labor  market.  Only  the  higher  grades  of  workers 
advertise  and  few  of  these  will  have  to  resort  to  advertise- 
ments in  a  time  of  industrial  activity.  Newspapers  and 
magazines  that  have  special  "  blue  lists  "  of  investigated 
advertisements  become  practically  employment  agencies 
and  are  certainly  to  be  consulted.  In  order  to  secure  special 
workers  newspaper  columns  are  of  great  assistance.  Even 
experts  may  be  obtained  through  the  "  positions  wanted  " 
columns  of  some  newspapers. 

Scouting.  —  A  successful  scouting  and  advertising  scheme 
was  recently  adopted  by  the  Fore  River  Shipbuilding  Com- 
pany. A  folder  was  distributed  in  many  industrial  centers, 
giving  working  hours,  wages,  overtime  pay,  bonuses,  a  com- 
plete list  of  the  trades  opened,  and  attached  was  a  time 
table  of  trains  to  the  yards.22  Largely  by  means  of  this 
folder,  the  force  was  quickly  doubled  from  5000  to  10,000. 
One  remarkable  instance  of  scouting  occurred  in  the  fall  of 
1917,  when  a  munitions  corporation  in  Pennsylvania  sent 
scouts  with  large  handbills  with  a  picture  of  gold  spilling 
out  of  a  bag  on  one  side  of  the  sheet  to  the  factory  districts 
in  Philadelphia  at  closing  hour.  These  handbills  were  dis- 
tributed and  a  special  train  was  provided  and  filled  every 
evening  with  the  workers  rushing  for  gold.     In  five  days 


HIRING  AND   HOLDING  35 

3500  men  were  thus  "kidnapped."  Not  infrequently  em- 
ployment agents  scout  cities  where  unemployment  has  been 
caused  by  disasters. 

In  a  New  York  manufacturing  town,  one  firm  has  a  social 
worker  who  canvasses  the  employes'  homes  to  list  all  chil- 
dren, their  respective  ages,  school  grades,  and  desirability 
as  future  employes.  Through  this  list,  kept  up  to  date, 
the  children  are  followed  until  they  leave  school  and  are  then 
offered  employment  in  the  plant.  Some  employers  resort 
to  a  house  to  house,  block  by  block,  canvass  in  certain  neigh- 
borhoods. But  most  scouting  is  effective  only  as  an  ex- 
treme emergency  method,  since  it  prohibits  the  careful 
selection  necessary  to  build  up  a  stable  force. 

Schools.  —  (4)  Employers  are  beginning  to  reach  back 
to  the  ultimate  sources  of  supply  and  to  explore  the  general 
schools,  trade  schools,  and  colleges  for  apprentices  in  clerical, 
technical,  and  executive  work.  The  Dennison  Manufactur- 
ing Company  each  summer  provides  places  for  a  number 
of  high-school  girls,  whether  there  is  need  for  them  or  not. 
Strawbridge  and  Clothier  Company,  of  Philadelphia,  do 
the  same.  The  Curtis  Company  Employment  Depart- 
ment keeps  in  touch  with  principals  of  all  schools  in  Phila- 
delphia, informing  them  of  their  requirements.  Other  large 
firms  send  representatives  each  year  to  colleges  and  edu- 
cational institutions  to  describe  the  occupational  opportu- 
nities in  their  plant.  The  General  Electric  Company  of 
Schenectady  covers  in  this  way  some  seventy-three  American 
and  eight  foreign  colleges.23 

Firms  desiring  young,  trainable  workers  should  strive  to 
secure  graduating  students  or  others  leaving  school.  Dur- 
ing the  first  years  after  the  completion  of  education,  irre- 
spective of  the  age  at  which  this  takes  place,  the  boy  or 
girl  is  apt  to  drift  from  one  job  to  another  in  llie  vague 
search  of  an  untrained  person  for  congenial  work.  To 
overcome  this  and  to  allow  for  more  specific  preparatory 


36  THE  HUMAN  FACTOR  IN  INDUSTRY 

training,  school  authorities  and  state  legislatures  have 
evolved  a  number  of  part-time  systems  by  which  children 
who  have  reached  a  given  age  may  divide  their  time  between 
school  and  work.  Failure  to  appreciate  the  value  of  train- 
ing a  potential  employe  before  he  leaves  school,  coupled 
with  the  difficulty  of  arranging  for  part-time  work,  has  pre- 
vented employers  from  availing  themselves  as  fully  as  may 
be  of  this  source  of  supply.  This  is  evident  from  the  ex- 
perience of  the  Curtis  Publishing  Company.  The  Penn- 
sylvania Child  Labor  Law  requires  minors  under  sixteen  to 
attend  school  eight  hours  a  week.  In  consequence,  a  Curtis 
employment  manager  writes  :  "  Should  a  request  be  received 
for  two  sixteen-year-old  boys,  eight  of  the  most  desirable 
applicants  would  not  be  too  many  to  send  for,  as  the  chances 
are  that  50  per  cent  will  be  satisfactorily  employed.  If 
the  request,  on  the  other  hand,  came  for  two  boys  under 
sixteen,  on  account  of  the  present  lack  of  demand  due  to  the 
law,  three  boys  would  be  enough  to  summon."  21 

Employment  Agencies.  —  (5)  Employment  agencies  are 
of  three  kinds : 

(a)  Private  agencies  conducted  for  profit ; 

(6)  Special  agencies,  conducted  usually  at  cost ; 

(c)  Public  agencies,  supported  and  managed  by  the  gov- 
ernment. 

Private.  —  The  most  costly  to  employer  and  employe 
alike  is  the  first  group  —  the  private  employment  agency. 
In  New  York  City,  nearly  one  thousand  private  employment 
agencies  collect  $2,000,000  in  fees  yearly,  and  yet  over  85 
per  cent  of  the  employers  never  use  them.17  The  expense 
to  the  applicant  for  work  at  the  private  agency  of  being  sent 
on  false  trails  and  of  the  frequent  misrepresentation  of  con- 
ditions, as  well  as  of  the  extortionate  fees,  is  well  known. 
The  private  agency's  lack  of  discrimination  and  interest 
in  recommending  employes  makes  it  also  costly  to  em- 
ployers.    A  recent  study  of  labor  conditions  in  a  large  plant 


HIRING  AND  HOLDING  37 

showed  that  it  had  been  seriously  exploited  by  the  private 
employment  agencies  in  a  number  of  Eastern  cities.  Work- 
men had  been  shipped  to  the  company's  plant  regardless  of 
fitness  for  the  work ;  the  company  was  charged  for  railroad 
fare,  board  for  retaining  the  worker,  and  fees,  while  the 
worker  often  did  not  arrive  at  all,  and  if  he  did,  often 
could  not  be  used.  The  consequent  loss  to  the  company 
was  estimated  at  $1000  a  month.24  The  private  employment 
agency  is  seldom  of  real  value  and  frequently  earns  its  name 
of  "  employment  shark." 

Special.  —  There  are  many  groups  of  special  agencies 
conducted  by  employers,  employes,  and  by  interested  citi- 
zens. The  employers'  trade  employment  offices  are  seldom 
of  great  value,  as  in  most  instances  they  are  distrusted  by 
the  workmen.  This  distrust  is  sometimes  merited,  as  in  the 
case  of  the  so-called  "  Welfare  Bureau  "  of  the  Lake  Car- 
riers' Association,  recently  investigated  by  the  United 
States  Department  of  Labor,  which  aims  primarily  at  strike- 
breaking and  blacklisting.25  Such  agencies  are  in  a  posi- 
tion to  furnish  selected  employes,  but  employes  seldom 
selected  on  the  basis  of  efficiency  or  ability.  In  addition 
to  the  trade  agency  are  the  efforts  of  Chambers  of  Com- 
merce to  organize  employment  agencies  among  their  mem- 
bers. These  may  prove  of  value,  provided  they  do  not  earti 
the  same  distrust  as  other  employers'  agencies.  On  the 
other  hand,  many  trade  unions  conducl  labor  exchanges, 
but  unless  the  trade  is  completely  unionized,  an  employer 
will  ordinarily  hesitate  to  resort  to  the  union  agency.  In 
either  case  there  are  a  fear  and  hostility  which  make  agencies 
of  this  sort  almost  valueless.  Still  a  mil  her  agency  con- 
ducted at  cost  is  the  philanthropic  agency,  which  at  pres- 
ent is  of  little  assistance  except  in  the  search  for  very  special 
or  unskilled  labor. 

Public. — The  third  group  is  the  public  employment 
exchange,  managed  for  the  mutual  benefit  of  employe  and 


38  THE   HUMAN   FACTOR  IN   INDUSTRY 

employer  and  supported  by  taxation.  Its  development 
in  this  country  has  been  exceedingly  slow.  England  and 
Germany  each  have  about  five  times  as  many  public  em- 
ployment agencies  in  operation  as  the  United  States.  The 
first  public  employment  bureau  in  the  United  States  was 
opened  in  the  State  of  Ohio  in  1890.  There  are  now  seventy 
or  eighty  such  bureaus  throughout  this  country,  but  until 
recently  these  have  acted  as  clearing  houses  for  unskilled 
manual  labor  only.  They  are  inadequate  in  number,  with- 
out proper  supervision,  organization,  and  information. 
The  managers  are  underpaid,  and  are  often  political  place 
holders.  Uniform  records  are  not  used,  and  the  bureaus 
do  not  cooperate.  Only  twenty  of  all  these  bureaus  report 
"  fitness  "  as  a  basis  of  placement.26  Within  the  last  few 
years  there  has  been  rapid  progress,  however,  notably  in 
Ohio,  Wisconsin,  Illinois,  and  Massachusetts.  The  Cleve- 
land bureau  has  centralized  all  the  agencies  in  the  city, 
private,  philanthropic,  and  public,  and  is  beginning  to  place 
the  college  graduate  and  the  specially  trained  man  and 
woman,  as  well  as  the  manual  laborer.27  It  maintains  a 
neutral  attitude  in  all  labor  disturbances,  investigates  both 
employer  and  employe,  and  aims  at  vocational  guidance 
and  fitness  in  placing. 

Federal.  —  Through  gaining  the  confidence  of  employe 
and  employer  such  bureaus  will  eventually  do  much  to 
solve  the  problems  both  of  unemployment  and  of  labor 
shortage.  The  greatest  hope  of  the  future  lies  perhaps  in 
the  new  branch  of  the  Department  of  Labor,  the  United 
States  Federal  Employment  Service,  which  aims  ultimately 
to  place  each  worker  in  the  country  in  that  job  in  which  he 
will  add  most  to  the  total  volume  of  production  with  the  least 
cost  to  himself,  to  the  industry  and  to  society.  It  seeks 
to  bring  the  entire  labor  supply  in  contact  with  all  de- 
mands for  labor  supply.  It  will  help  to  eliminate  the 
"  peddling  "  of  labor,  which  drains  the  vitality  of  the  labor 


'  HIRING  AND   HOLDING  39 

reserve,  the  costly  "  want  ads  "  and  that  parasitic  middle- 
man, the  private  employment  agency. 

Summary  of  Outside  Sources.  —  In  considering  the 
sources  of  labor  supply  outside  the  plant,  the  employment 
manager  of  a  firm  will  probably  decide  to  urge  the  present 
employes  to  bring  their  friends  to  the  employment  office. 
Incidentally,  the  extent  to  which  such  a  scheme  is  adopted 
by  the  employes  will  indicate  whether  or  not  conditions 
in  the  plant  are  satisfactory.  Advertising  and  scouting 
will  be  necessary  from  time  to  time,  but  the  need  for  such  an 
expenditure  as  they  entail  can  be  reduced  to  a  minimum  by  a 
careful  filing  system,  listing  applicants  who  have  sought 
employment  at  one  time  or  another,  or  have  been  reached 
through  previous  advertising  and  scouting  expeditions,  or 
through  inquiries  made  at  the  schools.  In  the  matter  of 
the  public  employment  bureaus,  the  employment  manager 
cannot  do  better  than  to  persist  in  presenting  his  needs  to 
the  nearest  bureaus  until  it  arises  to  the  opportunity  offered 
and  secures  the  material  desired. 

Inside  Sources.  —  (6)  The  more  constructive  work  of 
the  employment  department  will,  however,  have  to  do  with 
the  mobilizing  of  the  labor  supply  within  the  plant.  All 
those  who  are  temporarily  employed,  all  "  failures,"  all 
physically  misplaced,  and  all  whose  highest  powers  arc  not 
called  upon  in  the  position  occupied,  form  a  potential  turn- 
over quantity.  If  the  employment  department  aids  in  the 
process  of  adjustment  by  transferring  the  temporarily 
employed  and  the  failures,  and  by  promoting  those  who  are 
capable  of  more  difficult  work,  it  utilizes  this  potential  turn- 
over as  a  source  of  supply.  But  this  source  cannot  be  fully 
effective  until  after  the  various  jobs  of  the  plant  have  been 
classified  and  analyzed  as  to  their  different  requirements 
in  technique,  native  ability,  and  physique.  Lines  of  pro- 
motion must  also  be  indicated  and  a  system  for  gauging  the 
fitness  and  capacity  of  the  individual  developed.     Present 


40  THE  HUMAN  FACTOR  IN  INDUSTRY 

employes  should  also  be  encouraged  to  express  their  de- 
sires and  ambitions. 

The  Job  Specification 

Plant  Chart.  —  The  selection  of  workers  according  to 
their  fitness  for  work  is  as  dependent  on  an  intimate  knowl- 
edge of  the  positions  to  be  filled  as  on  an  adequate  supply  of 
applicants,  or  perfected  methods  of  determining  their  fit- 
ness. It  is  not  merely  general  ability  which  the  employ- 
ment department  must  look  for,  but  suitability  for  the 
specific  position.  Preparatory  to  discovering  this,  the  in- 
dividual qualities  and  equipment  called  for  in  the  position 
must  be  defined.  A  job  specification  or  analysis  should  be 
prepared  for  every  position,  so  that  it  need  not  be  necessary 
to  analyze  specific  requirements  during  the  emergency 
created  by  an  open  machine  or  desk.  A  valuable  pre- 
liminary is  a  complete  organization  chart  giving  every  posi- 
tion in  the  plant  in  its  relation  to  every  other  position. 
Then  the  position  within  the  jurisdiction  of  the  employment 
manager  should  be  classified,  an  appropriate  title  found,  the 
duties  involved  briefly  defined,  and  the  schedule  of  pay  given. 
The  Commonwealth  Edison  Company  has  a  classified  list 
of  about  four  hundred  different  positions ;  for  example : 

Addressograph  Operator 

To  include  all  positions,  the  duties  of  which  involve  the  operation 
of  an  addressograph,  and  the  performance  of  clerical  work  involved. 
Rate  A  —  (pay)  (6  mos.)  Rate  D  —  (pay)  (1  year) 

Rate  B  —     "       (6  mos.)  Rate  E  —     "       (1  year) 

Rate  C  —     "       (1  year)  Rate  F  —     "      Maximum 

Advertising  Correspondent,  Electric  Shop 

To  include  the  position  the  duties  of  which  involve  the  preparation, 
under  the  direction  of  the  Manager,  Electric  Shop,  and  General 
Publicity  Agent,  of  catalogues,  follow-up  letters,  and  other  adver- 
tising matter  for  the  purpose  of  increasing  the  sales  and  mail-order 
business  of  the  Electric  Shop. 

Minimum  —  (pay)  Maximum  —  (pay) 


HIRING  AND  HOLDING  41 

Analyzing  the  Job.  —  With  this  guide  to  what  is  required 
of  each  position,  the  employment  manager  proceeds  to 
learn  under  what  conditions  it  is  done,  and  what  is  essential 
in  physique,  mentality,  temperament,  education,  and  train- 
ing, for  doing  it  well.  The  drawing  up  of  these  job  speci- 
fications should  be  supervised  by  the  employment  manager, 
but  not  done  by  him  alone.  Often  specifications  are  written 
jointly  by  the  employment  manager  and  the  foreman. 
Meyer  Bloomfield,  in  analyzing  the  jobs  of  Bamberger 
and  Company's  department  store  in  Newark,  gave  every 
employe  a  list  of  questions  to  answer  about  his  duties  and 
problems.4  The  purpose  of  the  study,  to  insure  fair  deal- 
ing and  just  compensation,  was  explained  in  advance,  and 
hundreds  of  answers  were  received.  The  executives  were 
then  asked  to  describe  every  job  in  their  respective  de- 
partments. Finally  an  outside  investigator  made  his 
analysis.  From  these  three  descriptions,  from  three  points 
of  view,  Mr.  Bloomfield  wrote  the  composite  job  specifica- 
tion. 

Specification  Blank.  —  In  a  small  organization  it  is  fre- 
quently possible  for  the  person  charged  with  employing  to 
know  the  detail  of  each  type  of  position.  But  even  here  a 
careful  analysis  of  the  requirements  of  each  position  will  be 
useful.  In  a  large  industry  such  knowledge  is  manifestly 
impossible  and  the  job  specification  bee* tines  not  only  a 
convenience  but  a  necessity.  The  accompanying  specifica- 
tion blank  is  used  by  the  General  Railway  Signal  Com- 
pany. This  blank  is  filled  in  wherever  a  vacancy  occurs 
and  the  writing  of  it  takes  slightly  over  five  minutes.28  This 
is  a  combined  requisition  blank  and  job  specification  for  un- 
skilled workers.  Similar  ones  can  readily  be  prepared  for 
other  positions.  Usually  it  will  be  found  advisable  to 
have  the  foreman  fill  in  only  a  simple  requisition  blank, 
naming  the  job  or  jobs  to  be  filled,  and  to  have  the  employ- 
ment manager  refer,  in  selecting  the  applicant,  to  the  speci- 


42  THE  HUMAN  FACTOR  IN  INDUSTRY 

GENERAL   RAILWAY   SIGNAL   COMPANY 

Standard  Job  Specifications 

Copy  for 

Department Class Job  Name 

Description  of  Job 


Nature  of  Work  and  Working  Conditions 

Floor Quick Dirty. . . 

Heavy Standing Bench Slow Greasy. . 

Medium. . . .  Sitting Bench  Mach Rough ....  Wet 

Light Walking.  .  .  .Floor  Mach Close Clean. . . 

Continuously  repeated  operation  . .  . .  or  Variety  of  jobs  .* 

Make  of  Machine 

Length  of  time  required  to  learn  job 

Rate — D.W.  or  P.W. .  .Starting  Rate. .  .Avge.  Earnings  on  P.W. 
How  soon  put  on  piecework 

Requirements  —  Schooling  desired 

Necessary  to  read  and  write  English  . .  .Read  Blueprints 

Tools  required 

Preferred  Age Height ....  Weight ....  Nationality 

Previous  Training  or  Experience  desired 


Remarks. 


Dept.  Foreman Empl.  Dept 

Supt Date 

Form  890 


fications  that  have  been  previously  prepared.  The  United 
States  Shipping  Board  Emergency  Fleet  Corporation  has 
listed  and  analyzed  one  hundred  and  thirty-seven  different 
shipyard  occupations.  An  example  of  these  is  the  follow- 
ing one  of  the  hammersmith's  occupation  : 29 


HIRING  AND  HOLDING  43 

Other  names  by  which  occupation  is  known : 

Heavy  Forger. 
Occupations  most  nearly  allied  : 

Blacksmith,  Drop  Forger. 
Trade  requirements : 

The  Hammersmith  supervises  the  operation  of  all  kinds  of  work 
done  with  power  drop  hammers  and  forge  presses ;  heats  and 
hammers  into  shape  from  drawings,  templates  or  samples,  all 
heavy  shapes  or  forgings,  such  as  crankshafts,  axles,  frames, 
connecting  rods  and  any  sort  of  large  forgings.  He  works  on 
heavy  ingots,  but  occasionally  may  be  required  to  work  on 
lighter  ingots ;  he  should  be  able  to  do  bending,  drawing,  up- 
setting, welding,  and  forming,  using  coal,  coke,  gas,  or  oil  fires, 
and  be  familiar  with  the  various  steels.  He  should  be  able  to 
direct  work  of  heaters,  backhanders,  strikers,  and  helpers. 
Education : 

Common  school. 
Physical  requirements : 

Should  have  good  eyesight,  strength  and  endurance ;    ability  to 
stand  heat. 
Mental  requirements : 

Higher  than  average  intelligence. 
Experience : 

The  Hammersmith  should  be  an  expert  blacksmith  and 
thoroughly  experienced  in  general  power  hammer  work ;  must 
be  familiar  with  the  operation  of  all  classes  of  furnaces,  and 
should  have  had  similar  experience  in  a  repair  shop  or  indus- 
trial plant. 
Entrance  requirements  for  training  school : 

Must  be  a  practical  blacksmith ;   common  school  or  trade  school 
education;     be   familiar  with  mechanical   drawings  and   blue- 
prints ;   strength  and  enduranco ;  ability  to  stand  intense  heat. 
Rate  established  : 

Definition  need  not  be  confined  to  the  lower  grades  of 
work  hnt  may  be  usefully  applied  to  responsible  positions. 

An  important  and  technical  position  in  the  Welfare  Division 


44  THE  HUMAN  FACTOR  IN  INDUSTRY 

of  the  Metropolitan  Life  Insurance  Company,  for  instance, 
is  briefly  described  as  follows  : 

SUPERVISOR  —  NURSING   SERVICE 

Qualification     Registered  Nurse     Executive  Experience  with 
Visiting  Nurse  Association  or  other  large  group  of  Nurses 
Marked  Executive  Ability  Good  Correspondent 

Experience    in    public    speaking,   writing   and   statistical   work 
desired. 

Descriptive  Paragraph.  —  Mr.  Burke,  of  the  Detroit 
Steel  Products  Company,  prefers  the  descriptive  paragraph 
for  both  skilled  and  unskilled  worker  and  adds  to  a  descrip- 
tion of  duties  and  specific  requirements,  a  "  personality  " 
paragraph.30  A  storekeeper  foreman,  for  instance,  "  must 
be  able  to  direct  and  get  the  work  out  of  a  gang  of  common, 
ordinary  laborers.  To  some  extent  he  must  have  the  gruff 
personality  to  command  the  respect,  get  the  enthusiasm 
and  confidence  of  men  of  this  class  and  type.  He  should 
be  patient  and  even-tempered  enough  to  be  constantly 
'  bothered  '  for  material  and  readjustments,"  etc.  For  a 
press  hand  "  an  over-responsive,  over-keyed,  nervous  or- 
ganization would  be  dangerous  on  account  of  accidents, 
and  would  also  make  the  work  disagreeable.  ...  It  is  very 
essential  that  the  intelligence  be  not  over-active  or  ima- 
ginative," etc.  These  characterizations  add  considerably 
to  the  value  of  the  specification,  but  undoubtedly  all  other 
requirements  as  to  physique,  training,  and  education  should 
be  given  where  possible  in  a  form  similar  to  that  of  the  Gen- 
eral Railway  Signal  Company,  and  not  scattered  through 
several  paragraphs. 

There  is  a  difference  of  opinion  as  to  the  extent  to  which 
the  prejudices  of  the  foreman  should  appear  on  the  specifica- 
tion and  the  effort  made  to  choose  applicants  accordingly. 
Mr.  Burke  suggests  that  the  specification,  which  is  submitted 
to  the  foreman  for  approval,  should  expressly  state  that  poli- 


HIRING  AND  HOLDING  45 

tics,  religion,  nationality,  etc.,  need  not  be  considered  in 
choosing  applicants.30 

Advantages  of  Job  Specification.  —  An  additional  ad- 
vantage accruing  from  the  preparation  of  careful  specifica- 
tions is  that  a  just  standardization  of  wages  and  salaries 
is  made  possible.  The  use  of  the  plant  chart  and  job 
analyses  also  oils  the  wheels  of  the  human  machinery  by 
clearly  defining  the  interrelation  of  all  its  parts.  It  opens 
avenues  for  promotions  and  transfer,  and,  above  all,  enables 
the  employment  manager  to  know  what  to  look  for  in  the 
new  employe.  That  these  advantages  are  real  is  proved  by 
the  rapidity  with  which  such  job  specifications  are  being 
adopted.  The  Republican  Metal  Ware  Company,  the 
German-American  Button  Company,  the  General  Railway 
Signal  Company,  and  the  Curtis  Publishing  Company 
are  a  few  of  the  firms  now  using  them.  Mr.  Winslow  in  the 
Richmond  Survey  (1911)  made  out  such  specifications  for 
various  trades,  including  the  printing  and  tobacco  trades. 
They  are  being  made  out  by  nearly  every  member  of  the 
Employment  Managers'  Association  of  Detroit.1  j 

Future  of  the  Job  Specification.  —  A  questionnaire  sent 
out  by  the  Pennsylvania  Department  of  Labor  and  In- 
dustry, in  January,  1918,  marks  the  beginning  of  a  new 
epoch  in  the  short  history  of  the  specification.  So  far  the 
emphasis  has  been  on  what  the  employe  should  be.  In 
preparing  for  the  return  of  disabled  soldiers  this  ques- 
tionnaire seeks  to  find  out  from  Pennsylvania  employers 
what  that  employe  need  not  be.  It  asks  what  diseased  or 
crippled  men  are  now  employed  and  in  what  capacity;  also, 
how  many  men  could  be  employed  in  each  plant  who  had 
lost  one  hand,  both  hands,  one  leg,  both  legs,  one  eye,  both 
eyes,  etc. 

This  questionnaire  contains  a  valuable  hint  for  employers. 
Dr.  Farnum,  of  Avery  Company,  Bays,  "Some  of  us  have 
statistics  covering  several  years  showing  that  under  this 


46  THE   HUMAN  FACTOR  IN  INDUSTRY 

system  (that  of  placing  those  with  physical  defects),  the 
worse  the  physical  defect,  the  less  the  accident  incidence. 
.  .  .  Moreover,  these  same  statistics  show  that  labor 
turnover  varies  inversely  with  the  physical  defects  of  the 
laborer."  31 

A  further  interesting  change  which  may  appear  in  job 
specifications  in  the  near  future  is  the  extension  of  the  de- 
sirable age  limit  of  the  new  employe.  In  1917  the  Em- 
ployers' Association  of  Chicago  placed  about  9500  men  over 
45  years  of  age  with  such  success  that  at  the  end  of  that  year 
916  employers  in  and  near  the  city  were  regularly  hiring 
these  older  men.32  They  have  been  placed  by  this  as- 
sociation in  every  conceivable  kind  of  skilled  and  unskilled, 
clerical  and  semi-executive  work,  and  the  testimony  of  their 
achievement  is  overwhelmingly  in  their  favor.  No  longer 
will  they  be  relegated  to  the  night  watchman's  post.  One 
firm  rates  their  efficiency  as  10  per  cent  greater  than  that 
of  younger  men  in  the  same  work.  Hart,  Schaffner  and 
Marx  Company  began  experimenting  thus  with  older  men 
in  the  fall  of  1916  and  affirm  the  following  advantages  to 
accrue  from  their  employment : 

(1)  They  have  a  steadying  influence  on  the  factory  morale 
[because  many  of  them  have  had  the  employers'  point  of 
view] ; 

(2)  They  decrease  the  labor  turnover  [because  the  older 
man  "  tends  "  to  stick] ; 

(3)  They  give  greater  application  to  and  have  greater  in- 
terest in  their  work  [because,  having  fewer  distractions  than 
younger  men,  although  their  potential  energj^  is  less  it  is  all 
used  in  their  work.]31 

Making  most  of  the  labor  supply  at  hand  by  having  the 
job  specifications  include  what  the  worker  need  not  be, 
may  prove  cheaper  in  the  long  run  than  the  elaborate  ad- 
vertising and  scouting  schemes  to  which  some  employers 
have  resorted  to  secure  their  employes. 


CHAPTER  III 
HIRING  AND  HOLDING,  Continued 

Selecting  the  Worker 

The  actual  process  of  selecting  a  man  for  a  position  implies 
a  double  problem  :  first,  determining  as  accurately  as  pos- 
sible the  man  who  will  fit  the  position,  and  second,  making 
the  position  sufficiently  attractive  to  the  man  to  make  him 
wish  to  secure  it  and  to  hold  it  after  it  has  been  secured. 
In  one  respect,  the  employment  manager  acts  as  a  buyer 
of  service  and  the  prospective  applicant  is  the  seller ;  in 
another,  the  positions  are  reversed  and  the  applicant  is  the 
buyer  of  a  given  position  and  the  employment  manager  the 
seller.  While  the  technique  of  the  employer  as  buyer  has 
been  carefully  developed,  his  position  as  seller  is  generally 
ignored,  to  the  detriment  of  industry.  A  workman  is  valu- 
able in  proportion  to  the  degree  of  spontaneity  of  effort 
which  he  puts  into  his  work.  This  spontaneity  may  be 
fostered  by  just  treatment  as  regards  wages  and  working 
conditions,  or  it  may  be  killed  by  the  indifference  of  the 
employer  who  regards  his  employe  as  a  mere  cog  in  the 
machine,  to  be  treated  with  only  such  consideration  as  is 
absolutely  necessary  in  order  to  obtain  his  services. 

There  are  four  considerations  which  determine  the  de- 
sirability of  the  job  to  the  applicant  and  his  continued 
willingness  to  work  well : 

(1)  Remuneration ; 

(2)  Opportunity  for  promotion ; 

(3)  Working  conditions ; 

(4)  Social  advantages. 

47 


48  THE   HUMAN   FACTOR   IN   INDUSTRY 

Elements  Determining  Selection.  —  If  the  applicant 
is  to  make  a  satisfactory  and  satisfied  employe  these  points 
must  be  carefully  considered,  the  advantages  and  disad- 
vantages frankly  and  honestly  discussed,  and  the  importance 
to  the  firm  and  the  dignity  of  the  specific  work  made  clear. 
The  high-grade  employment  manager  appreciates  the  im- 
portance of  his  position  as  seller,  and  gives  to  the  applicant 
an  impression  of  the  attitude  of  his  concern  which  does  not 
soon  wear  off. 

On  the  other  hand,  careful  discrimination  is  necessary  in 
selecting  the  worker.  The  main  factors  to  be  considered 
are: 

(1)  Training:  education  and  experience ; 

(2)  Native  mental  ability  ; 

(3)  Physical  condition ; 

(4)  Personality. 

Changes  in  Methods  of  Selection.  —  Increasingly  is  the 
effort  being  made  by  progressive  employers  to  secure  a 
scientific  estimate  of  the  individual  worker's  capacities 
through  the  application  of  medicine  and  psychology.  The 
changes  which  employment  departments  have  made  in 
the  methods  of  selecting  employes  is  indicated  by  the  fol- 
lowing table  prepared  by  Mr.  Kelly,  comparing  the  means 
used  to  determine  the  applicant's  fitness  by  twelve  firms 
without  separate  employment  departments  and  eighteen 
firms  with  such  departments.4 

Whereas  at  one  time  the  "  trial  on  work  "  was  the  only 
test  of  an  applicant's  fitness,  this  table  marks  its  decreas- 
ing popularity  wherever  separate  emplo3'ment  depart- 
ments have  been  organized.  Of  the  eighteen  firms  with 
such  departments  only  three  depend  largely  on  "  trying 
out,"  while  nine  of  the  other  twelve  firms  still  cling  to  this 
old-fashioned  method  of  selection.  The  employment  de- 
partments substitute  for  this  trial  work  and  the  spoiled 
work  and  wasted  time  that  accompany  it,  the  application 


HIRING   AND   HOLDING 


49 


Without  Separate 
Employment  Depart- 

With Separate 
Employment  Depart- 

ments 

(12  firms  — 8,225 

employes) 

ments 

(18  firms  —  47,625 

employes) 

Number 

Percentage  of 

Firms 
Investigated 

Number 

Percentage  of 

Firms 
Investigated 

Application  blanks     .     . 

3 

25.0 

14 

77.7 

Personal  interview  with 

other  than  foreman     . 

7 

58.3 

17 

94.5 

References    followed   up 

in  majority  of  cases    . 

1 

8.3 

12 

66.6 

Physical  tests  .... 

0 

0.0 

3 

16.6 

Trial  on  work  largely  de- 

pended upon      .     .     . 

9 

75.0 

3 

16.6 

Mental  tests     .... 

0 

0.0 

7 

38.8 

blank,  interviews  with  employment  officials,  physical  and 
occasionally  mental  tests,  and  the  careful  following-up  of 
references. 

Preliminary  Interview.  —  The  first  step  in  the  selection 
of  employes  is  the  preliminary  interview  in  which  the  em- 
ployment manager  discovers  whether  the  applicant  satisfies 
certain  minimum  requirements.  Some  insurance  com- 
panies, for  instance,  have  decided  that  salesmen  are  more 
successful  if  married  and  within  certain  age  limits.  Ap- 
plicants who  are  not  married  and  not  of  a  suitable  age  can 
be  immediately  rejected.  When  the  firm  has  many  more 
applicants  for  work  than  it  can  use.  this  interview  will 
serve  to  discourage  a  large  number  and  will  encourage  only 
those  who  promise  best  to  fill  the  requirements  of  the  par- 
ticular job.  At  this  interview,  too,  the  wage  or  salary 
scales,  the  required  preliminary  training,  the  hours,  and  the 
physical  and  mental  examinations  required  should  be 
briefly    explained    to    the    applicant.     If    the    preliminary 

application  is  made  by  mail  and  an  interview  not  readily 
obtainable,  the  application   blank  should  be  inclosed  in  a 


50  THE   HUMAN   FACTOR   IN   INDUSTRY 

letter  outlining  the  points  that  would  have  been  explained 
in  the  interview. 

The  Application  Blank.  —  What  the  application  blank 
should  ask  is  a  mooted  question.  There  is  general  agree- 
ment among  experts  that  there  can  be  no  standard  appli- 
cation blank  for  all  industries  or  all  departments  in  the 
same  industry.  There  will  be  a  radical  difference  in  the 
blanks  used  for  a  mill-hand  or  a  stenographer,  a  teamster 
or  a  salesman.  At  the  present  time  the  application  blank 
reflects  the  absence  of  the  job  specification  and  a  careful 
analysis  of  the  work  requirements.  There  is  remarkably 
little  differentiation.  In  a  wide  variety  of  industries,  eleven 
out  of  twenty-five  concerns  recently  investigated  cover 
the  following  subjects  in  their  application  blanks : 

(1)  Full  name  and  address ; 

(2)  Age; 

(3)  Date  of  application ; 

(4)  Married  or  single ; 

(5)  Names  and  addresses  of  former  employers ; 

(6)  Length  of  time  in  each  position ; 

(7)  Nature  and  extent  of  education ; 

(8)  Nationality; 

(9)  Position  applied  for ; 

(10)  Reasons  for  leaving  former  positions ; 

(11)  Number  of  persons  dependent  on  applicant; 

(12)  Wages  in  each  of  former  positions ; 

(13)  Height  and  weight ; 

(14)  References  other  than  former  employers; 

(15)  Employed  by  this  company  before ; 

(16)  Number  of  children. 

None  of  the  questions  asked  relates  to  the  specific  require- 
ments of  the  plant  jobs.  Standardized  application  blanks 
cannot  supply  the  need  of  different  industries.  Careful  con- 
sideration must  be  given  to  each  position,  if  the  application 
form  is  to  have  real  value. 


HIRING   AND   HOLDING  51 

A  Common  Omission.  —  The  interval  elapsing  between 
leaving  school  and  going  to  work  is  noted  by  the  Bournville 
Works  in  England.32  A  girl,  for  instance,  who  leaves  school 
at  sixteen  years  of  age,  marries  and  does  not  return  to  work 
for  several  years,  may  in  the  interval  have  so  lost  the  habits 
of  discipline,  obedience,  and  concentration  that  she  cannot 
even  be  trained  for  any  but  the  least  skilled  work.  This 
suggests  the  need  of  information  rarely  asked  for  on  the 
application  blank,  namely :  the  total  time  during  which 
the  applicant  has  been  unemployed  during  the  preceding 
years. 

Useless  Questions.  —  The  purpose  of  the  application 
blank  is  to  secure  facts  and  not  opinions.  Occasionally 
an  applicant  is  asked  whether  he  is  honest  or  dishonest, 
energetic  or  lazy,  courteous  or  discourteous.  The  ability 
to  analyze  self  is  as  rare  as  honesty,  and  such  questions  are 
valueless.  The  religion  of  the  applicant  and  whether  or 
not  he  is  a  church  member  is  rarely  important,  except  in  a 
position  in  which  success  may  depend  in  part  upon  social 
connections,  as  in  the  case  of  salesmen.  Provided  the 
applicant  speaks  English,  nationality  is  of  small  impor- 
tance. In  general,  health  questions  are  unavailing  because 
the  applicant  will  be  on  guard  against  discriminatioD  <>n  a 
health  basis.  In  blanks  filled  out  without  a  preliminary 
interview  a  question  about  physical  defects  may  be  neces- 
sary, however. 

Value  of  the  Application  Blank.  —  One  great  advantage 
of  the  application  blank  is  its  permanency.  It  can  be  filed 
for  future  use  so  that  the  facts  established  at  one  time  are 
available  at  a  later  date.  This  applies  particularly  to  those 
persons  for  whom  no  immediate  position  is  available.  To 
make  it  as  effective  as  possible,  careful  consideration  must 
be  given  to  methods  of  filing.  These  al  present  vary  widely 
in  different  concerns.  Joseph  and  Feiss  Company  file  by 
Sex,  Age,  and  Apparent  Suitability.5     The  Curtis  Publish- 


52  THE    HUMAN   FACTOR    IN    INDUSTRY 

ing  Company  have  a  detailed  file  for  every  class  of  labor 
employed,  from  the  compositor  and  the  pressman  to  the 
fly  boy  and  the  truck  driver,  with  one  class  for  undesirables.3* 
Where  only  skilled  labor  can  be  employed,  such  a  detailed 
system  of  filing  is  practical,  but  for  positions  which  do  not  re- 
quire previous  training  or  skill,  such  a  classification  need- 
lessly restricts  the  labor  supply  available  for  each  position. 
With  Joseph  and  Feiss  Company,  for  instance,  previous 
experience  is  not  emphasized  because  90  per  cent  of  their 
employes  are  trained  in  from  two  to  ten  jobs  after  being 
employed.5  Where  the  indust^  has  many  processes  pecul- 
iar to  itself,  as  in  the  case  of  the  Dennison  Manufactur- 
ing Company,  which  engages  only  10  per  cent  skilled 
workers,  the  great  need  is  for  untrained  but  trainable 
workers.  Usually,  however,  each  blank  can  be  filed  with 
some  group  of  similar  jobs  in  accordance  with  the  appli- 
cant's (a)  previous  experience  or  training,  or  (6)  apparent 
suitability  and  expressed  preference.  The  application  should 
be  preserved  with  later  records  of  service  to  be  referred  to 
when  transferring,  discharging,  or  promoting  an  employe 
or  reemploying  a  former  employe. 

Time  Needed  for  Selection.  —  But  the  application  blank, 
together  with  the  waiting  period  for  examination  that  it 
implies,  has  in  it  the  strength  —  and  possibly  the  weak- 
ness —  that  more  time  is  required  in  hiring  than  under  the 
former  hit  and  miss  methods.  The  entire  selective  scheme 
collapses  if  the  employes  do  not  give  advance  notice  when 
leaving  and  the  foreman  when  discharging  or  needing  an  in- 
creased force.  Time  is  needed  for  any  adequate  selective 
process.  Requisition  blanks  should  be  provided  each 
department.  If  the  foreman  realizes  that  his  departmental 
turnover,  for  which  he  is  responsible,  is  dependent  on  this 
careful  selection,  he  will  do  his  part  in  filing  his  requisition 
blanks  early.  The  employe  is  the  more  difficult  one  to  con- 
vince of  the  advantage  of  giving  notice.     The  four  ways  in 


HIRING  AND   HOLDING  53 

which  the  short  notice  habit  of  the  employes  may  be  checked, 
however,  are  by 

(1)  Giving  the  selected  applicant  time  and  expressly  ask- 
ing him  to  notify  his  present  employer,  which  impresses 
him  with  the  fact  that  he  will  be  expected  to  do  the  same 
thing  again ; 

(2)  Deferring  final  payment  until  the  desired  period  of 
notice  is  over ; 

(3)  Making  him  understand  that  future  recommenda- 
tions depend  on  his  manner  of  leaving  ; 

(4)  The  employer's  reciprocating  in  giving  advance 
notices  of  discharge  and  laying-off . 

Second  Interview.  —  When  the  applicants  have  been 
summoned  in  response  to  the  foreman's  requisition,  there 
ensues  the  first  prolonged  interview.  During  this  inter- 
view the  applicant  must  be  given  full  and  frank  informa- 
tion about  the  work,  its  advantages,  and  drawbacks.  The 
difficulties  of  the  work  are  emphasized  by  some  employ- 
ment managers,  and  the  maximum  earnings  understated. 
The  permanency  or  temporary  nature  of  the  position  should 
be  revealed  in  full,  since  giving  this  information  forestalls 
dissatisfaction  and  insures  a  more  stable  working  force. 

Judgment  of  Personality.  —  From  the  selective  point  of 
view  the  purpose  of  the  interview  is  to  judge  personality 
and  whether  or  not  the  applicant  will  fit  in  with  the  "  Spirit 
of  the  Hive."  Joseph  and  Fciss  Company  particularly 
emphasize  the  importance  of  the  applicant's  fitness  for  the 
organization.  Dr.  Katherine  Blackford  would  have  the 
employment  manager  unobtrusively  fill  out  an  analysis 
blank  noting  the  external  characteristics,  the  color  of  the 
eyes,  shape  and  size  of  the  head  and  hands,  etc. ;  from  this 
is  later  built  the  entire  inner  man.  But  the  data  of  achieve- 
ment of  physiognomists  are  meager  and  the  results  obtained 
do  not,  as  yet,  warrant  a  general  adoptioD  of  their  schemes. 

A  more  promising  method  of  determining  personality  is 


54  THE   HUMAN   FACTOR   IN   INDUSTRY 

that  of  Dean  Schneider,  of  the  University  of  Cincinnati, 
who  suggests  that  the  employment  manager  in  conversa- 
tion note  whether  the  applicant  is  mental  or  manual,  di- 
rective or  dependent,  original  or  imitative,  social  or  self- 
centered,  an  indoor  man  or  an  outdoor  man,  a  man  of  large 
or  small  scope,  settled  or  roving  in  disposition,  accurate 
or  inaccurate,  rapid  or  slow  to  coordinate  facts,  dynamic 
or  static.35  These  characteristics  are  significant  in  the 
matter  of  vocational  guidance,  but  it  will  be  a  rarely  skillful 
manager  who  can  so  define  the  applicant  in  the  brief  period 
of  an  interview. 

Present  Interviews.  —  When  the  employment  manager 
of  the  Curtis  Publishing  Company  claims  to  judge  the  ap- 
plicant by  the  set  of  chin,  shape  of  mouth,  courteous  vigor 
of  hand  grip,  address,  bearing,  steadiness  of  eye,  neatness, 
etc.,  one  cannot  but  wonder  that  all  positions  should  require 
just  these  qualifications  to  insure  success.34  The  most  ac- 
complished prevaricator  will  have  a  steady  eye,  for  instance. 
But  the  qualities  looked  for  by  Dean  Schneider  are  not 
superficial  and  indicate  the  tendency  among  those  interested 
in  employment  methods  and  vocational  guidance  to  give 
the  interview  a  much  needed  definiteness  of  object.  Pro- 
fessor Scott  tells  of  an  experiment  made  by  the  American 
Tobacco  Company.36  Six  managers  of  sales  divisions  in 
different  parts  of  the  country  came  together  to  select  eighteen 
salesmen  from  thirty-six  applicants.  Each  manager  inter- 
viewed and  selected  his  men  independently  and  by  his  own 
method.  In  the  case  of  twenty-eight  applicants  there  was 
not  even  agreement  as  to  whether  they  belonged  in  the  upper 
or  lower  half  of  the  group  of  thirty-six.  One  was  rated  as 
number  one  and  thirty-two,  another  as  three  and  thirty. 
The  experiment  indicates  that  ordinary  methods  of  inter- 
viewing are  thoroughly  unreliable. 

A  Concrete  Scale  for  Rating  Applicants.  —  The  concrete 
scale  used  to-day  to  rate  the  ability  of  the  officers  of  our 


HIRING    AND    HOLDING  55 

army  was  devised  by  Professor  Scott  and  suggests  a  system 
which  might  be  adapted  to  the  interviewing  of  industrial 
applicants.  By  this  rating  system  a  Major  keeps  before 
him  the  names  of  five  tried  officers  rated  in  one  group  ac- 
cording to  their  physical  qualities,  in  another  by  their  in- 
telligence, in  another  by  their  leadership,  etc.  The  officer 
in  line  for  promotion  is  then  given  the  rating  of  the  superior 
officer  whom  he  most  resembles  on  each  point  and  his  total 
percentage  rating  compared  with  the  total  ratings  of  those 
five  officers.  This  method  has  proved  its  practicability  in 
the  army  and  in  the  same  definite  way  an  employment 
interviewer  could  judge  the  personality  and  apparent  suita- 
bility of  an  applicant  by  comparing  him  with  five  employes 
who  have  "  made  good  "  in  the  job  under  consideration. 

The  questionnaires  used  by  the  Personnel  Department  of 
the  United  States  army  to  ascertain  the  past  experience  and 
proficiency  of  every  man  drafted  into  the  army  who  had  been 
previously  engaged  in  a  trade,  are  suggestive  of  a  method  by 
which  the  interviewer  might  be  utilized  in  finding  out  the  appli- 
cant's technical  ability.  These  questionnaires  are  a  form  of 
oral  examination  on  tools  and  methods  of  work  and  a  man's 
answers  are,  therefore,  a  more  satisfactory  basis  for  judging 
his  capacity  than  any  brief  statement  as  to  his  past  occupa- 
tion. 

Psychological  Tests.  —  Appreciating  the  weakness  of  the 
interview  in  determining  individual  capacity  and  the  im- 
portance of  placing  the  worker  in  the  position  for  which  he 
is  best  fitted,  psychologists  have  studied  the  problem  of 
placement.  Attempts  have  been  made  to  develop  tests 
which  will  make  it  possible  to  fit  the  worker  in  that  niche 
in  which  he  belongs  and  in  which  he  will  be  happiest  ami 
most  effective.  There  is  much  skepticism  as  1"  the  results 
of  such  efforts;  the  experts  in  the  field  being  among  those 
most  frequently  advocating  caution  in  the  application  of 
the  principles  of  their  science.     Though  still  experimental, 


56  THE   HUMAN   FACTOR   IN   INDUSTRY 

psychological  tests  have  indicated  their  value  sufficiently 
to  encourage  further  careful  study. 

Development.  —  The  first  vocational  test  designed  by 
psychologists  was  Professor  Seashore's  of  the  University  of 
Iowa.  His  pioneer  effort  was  to  eliminate  the  "  unfit  " 
from  among  those  selecting  a  musical  career,  by  means  of 
tests  for  auditory  acuity  and  tonal  discrimination.  Tele- 
phone companies  now  commonly  test  the  acuteness  of  hear- 
ing of  applicants.  The  Army  and  Navy  add  to  such  a  test 
one  for  color  blindness.  In  industrial  fields  the  railroads 
and  some  industrial  plants  test  every  applicant  for  work 
for  color  blindness.  But  psychology  is  passing  from  the 
realm  of  these  more  obvious,  physical  characteristics  to 
the  testing  of  the  so-called  mental  characteristics  and  apti- 
tudes. Not  only  should  a  telephone  operator  have  keen 
hearing  and  dexterity  but  good  memory,  attention,  intelli- 
gence, and  exactitude  are  all  essential.  Professor  Muen- 
sterberg  supplied  the  Bell  Telephone  Company  with  tests 
for  these  qualities.  The  Curtis  Publishing  Company  apply 
Professor  Muensterberg's  tests  to  their  clerks  and  stenog- 
raphers as  contributory  evidence  of  efficiency  and  accuracy. 

Correlation  with  Experience.  —  Cheney  Brothers  use  a 
series  of  Professor  Scott's  examinations  for  their  high  grade 
clerical,  systematizing,  cost,  executive,  and  sale  forces.  It 
is  found  there  that  "  the  correlation  of  tests  with  subsequent 
accomplishment  is  extremely  high  and  that  such  tests  offer 
a  very  valuable  aid  in  selection."18  Thirty  of  their  efficiency 
experts  were  examined  and  the  results  correlated  up  to  87 
per  cent  with  the  judgment  of  their  supervisors.37  Joseph 
and  Feiss  rely  in  part  on  psychological  tests  prepared 
by  Professor  Scott  for  the  selection  of  their  emploj^es,  includ- 
ing a  test  of  the  ability  to  follow  instructions.  Testing 
twenty-one  of  their  employes,  both  operatives  and  exec- 
utives, the  results  checked  up  accurately  in  nearly  every 
case  with  their  records  and  personal  estimates  of  ability.5 


HIRING   AND   HOLDING  57 

Salesmen's  Tests.  —  Of  late  the  salesman  has  received 
much  attention  from  the  psychologist.  A  cooperative 
undertaking,  the  Bureau  of  Salesmanship  Research,  has 
been  organized  at  the  Carnegie  Institute  of  Technology,  by 
thirty  corporations  employing  large  numbers  of  salesmen. 
Under  the  direction  of  Professor  Scott,  scientific  studies  of 
salesmanship  have  been  undertaken  and  tests  are  being 
developed.36  These  include  examinations  on  (1)  general 
native  intelligence;  (2)  foresight  and  imagination ;  (3) 
ability  to  understand  instructions ;  (4)  ability  to  see  what 
is  wrong  in  a  more  or  less  complex  situation,  and  to  correct 
it ;   (5)  general  information. 

Time  Required.  —  Occasionally,  objection  is  made  to 
the  length  of  time  required  for  the  psychological  examina- 
tion. The  Metropolitan  Life  Insurance  Company  claims, 
however,  that  if  the  applicant  for  a  clerical  position  cannot 
endure  a  three  and  a  half  hour  examination  he  or  she  will 
probably  not  be  able  to  do  a  day's  work.  The  Curtis  Pub- 
lishing Company  pays  fifty  cents  to  every  applicant  for  cadi 
day  devoted  to  the  examinations,  whether  or  not  the  appli- 
cant passes.  This  sum  pays  the  expense  involved  of  car 
fares  and  lunch.7 

Value  in  Eliminating  Applicants. — There  is  every  indi- 
cation that  vocational  and  industrial  psychology  will  tend 
to  exterminate  the  old  try-out  methods  of  selecting  em- 
ployes. The  Curtis  Publishing  Company,  in  1913,  after 
weeding  out  80  per  cent  of  their  applicants  by  means  of 
the  interview  and  an  examination  of  the  application  blank, 
gave  the  psychological  examinations  which  eliminated  50 
per  cent  of  the  remaining  group.  An  instance  is  given 
when,  out  of  twenty-five  applicants  for  particularly  exacting 
stenographic  work,  only  one  passed  the  tests.7  Previously, 
some  dozen  girls  would  probably  have  been  tried  out,  one 
after  another  during  a  period  of  several  weeks,  before  the 
right  girl  could  have  been   found.      By  means  of  the  psy- 


58  THE   HUMAN   FACTOR   IN   INDUSTRY 

chological  test,  without  the  cost  to  the  worker  of  losing  a 
position,  or  to  the  company  of  losing  the  time,  the  right 
one  out  of  the  twenty-five  was  found  within  a  few  hours. 

Function  of  Psychological  Test.  —  In  the  selection  of  ap- 
plicants for  highly  specialized  work  the  function  of  the 
psychological  test  will  be  to  eliminate.  But  in  work  re- 
quiring lower  and  consequently  more  usual  grades  of  ability 
the  psychologist  will  assist  in  placement  rather  than  se- 
lection. Mr.  Feiss  emphasizes  the  fact  that  general  intelli- 
gence tests  are  not  used  to  eliminate  but  to  place  applicants 
at  the  Clothcraft  Shops.  As  an  example  of  what  the  use  of 
the  Binet  tests  might  make  avoidable,  he  tells  the  story  of  a 
young  girl  who  was  employed  by  the  Clothcraft  Shops  and 
put  on  a  simple  operation  where  she  became  very  efficient. 
She  was  advanced  and  was  unable  to  make  good  though  tried 
out  on  various  operations.  She  finally  quit,  but  returned  in  a 
few  months  and  was  tried  out  on  machine  work.  She  again 
failed,  and  when  at  last  put  back  on  a  simpler  operation  re- 
quiring less  dexterity  and  intelligence,  she  began  to  progress 
until  now  her  earnings  average  with  the  best.5 

Placement  of  Low  Average  Mentality.  —  Much  of  the 
work  in  industry  can  be  done  by  the  person  of  average  or 
low  mentality,  although  there  will  probably  never  be  a 
return  to  the  system  by  which  a  manufacturer  in  England, 
in  1815,  agreed  with  a  parish  to  take  in  his  factory  one  idiot 
with  every  twenty  sound  children.38  One  industry  can  af- 
ford no  employes  of  merely  average  intelligence,  while  it 
may  be  that  another  can  utilize  few  mentally  superior  em- 
ployes. If,  as  has  been  claimed,  from  five  to  fifteen  per 
cent  of  the  employes  in  any  factory  are  subnormal,  there 
is  here  a  field  for  psychological  placement  in  industry  whose 
surface  has  scarcely  been  scratched.39 

But  the  millennium  is  not  yet  in  sight.  Psychologists 
themselves  will  not  prophesy.  As  Professor  Whipple  re- 
marks :    "  The  psychologist  in  my  judgment  would  better 


HIRING  AND   HOLDING  59 

wear  a  veil  of  modesty  and  not  seek  to  emulate  the  boast- 
ings of  physiognomic  charlatans  who  claim  to  have  selected 
12,000  persons  for  12,000  jobs  without  one  single  mistake, 
by  their  system  of  concave  and  convex  faces."  40  Further- 
more, the  problem  of  selection  can  never  be  entirely  solved 
by  even  the  most  cleverly  devised  psychological  examina- 
tion. Such  methods  of  prolonged  observation  as  Dean 
Schneider  can  employ  in  the  College  of  Engineering  at  the 
University  of  Cincinnati,  where  he  experiments  with  the 
young  worker  while  in  training,  alone  provide  for  adequate 
vocational  guidance.  Until  the  schools  commonly  adopt 
vocational  training  for  the  older  pupils  and  scientific  vo- 
cational guidance  as  part  of  their  curriculum  there  can  be 
no  real  adjustment  of  man  and  job. 

Physical  Examinations.  Purpose. — The  physical  en- 
trance examination  in  industry  has  extended  rapidly  as  a 
result  of  the  passage  of  the  workmen's  compensation  legis- 
lation. Its  obvious  purpose  is  to  protect  the  industry  from 
the  danger  of  accidents  among  workers  who  are  not  physi- 
cally fit,  and  yet  the  elimination  of  the  unfit  should  be  only 
a  secondary  aim  of  the  medical  examination.  The  main 
objects  are  properly  to  protect  the  prospective  employe 
by  placing  him  in  a  position  in  which  such  physical  limi- 
tations as  he  may  have  will  not  be  disadvantageous  to  him- 
self, to  his  fellow  workers,  or  to  the  industry.  He  must  be 
protected  from  self-injury,  his  fellow  workers  from  con- 
tagion or  accidents  resulting  from  his  physical  disability. 
and  the  industry  from  a  decreased  output  and  the  expense 
of  compensation.  This  protect  ion  demands  not  the  rejection 
of  the  physically  imperfect  worker  but  his  careful  placement. 

In  highly  hazardous  occupations,  and  in  industries  in 
which  there  is  but  slight  variety  of  occupation,  a  high  re- 
jection rate  is  perhaps  reasonable  and  excusable.  Under 
other  conditions,  it  usually  indicates  a  lack  of  appreciation 
of  the  problems  involved.     The  United  States  Army,  with 


60  THE   HUMAN   FACTOR   IN   INDUSTRY 

its  rigid  physical  requirements,  rejected,  in  the  first  draft, 
in  1917,  between  30  and  40  per  cent  of  the  men  called. 
Such  a  proportion  of  physical  rejections  would  be  suicidal 
to  industry.  A  short-sighted  policy  and  inadequate  analysis 
of  occupations  seems  to  be  indicated  where  a  hat  manu- 
facturing company  and  a  life  insurance  company  rejected 
respectively  as  many  as  25  and  35  per  cent  of  their  appli- 
cants for  physical  reasons  alone.  The  Stetson  Company, 
in  the  year  ending  October,  1915,  rejected  78  of  311  appli- 
cants examined.41  During  the  year  ending  November,  1917, 
in  the  Metropolitan  Life  Insurance  Company,  770  out  of 
2201  applicants  failed  to  pass  the  medical  examination.42 

Technical  skill  and  mental  ability  do  not  necessarily  co- 
incide with  perfect  health.  To  secure  the  former  no  industry 
can  afford  to  reject  the  many  applicants  whose  physical 
condition  is  imperfect.  Many  firms  realize  this.  Sears, 
Roebuck  and  Company,  in  1916,  out  of  7000  applicants 
for  work  found  22  per  cent  with  a  definite,  diseased  condi- 
tion. Of  these  only  3.1  per  cent  were  refused  employment 
and  the  other  18.9  per  cent  went  to  work  in  carefully  se- 
lected positions.43  The  Rike-Kumler  Company,  a  depart- 
ment store  in  Cleveland,  in  one  year  rejected  only  5  per 
cent  of  their  applicants  for  physical  reasons  alone.  The 
reasons  for  these  rejections  were,  in  their  order  of  frequency, 
venereal  disease,  tuberculosis,  contagious  skin  trouble, 
eye  diseases,  and  physical  infirmities.  65  per  cent  were 
in  good  condition  and  the  remaining  30  per  cent  were 
watched  with  weekly  re-examinations,  while  cases  of  defec- 
tive teeth,  nose  and  throat  trouble,  defective  vision,  flat 
feet,  varicose  veins,  and  hernia  were  corrected,  in  part  at 
least.44  Cheney  Brothers  can  provide  similar  records.18  The 
Chicago  and  Northwestern  Railroad  found  12  per  cent  of 
men  examined  unfit  for  the  form  of  employment  sought.45 

An  Aid  in  Placement  of  the  Unfit.  —  That  the  importance 
of  proper  placing  is  the  main  purpose  of  the  medical  exam- 


HIRING   AND   HOLDING  61 

ination  is  clearly  pointed  out  by  Dr.  C.  G.  Farnum,  of  the 
Avery  Company,  who  says,  "  We  are  continually  asked 
what  we  do  about  men  with  one  arm  or  one  leg,  with  bad 
vision  or  defective  hearing,  with  those  that  have  hernia 
or  Bright's  disease,  or  high  blood  pressure  or  heart  disease 
or  any  other  of  the  thousand  and  one  defects  the  American 
workmen  possess.  What  do  we  do?  Why,  we  put  them  to 
work,  but  we  put  them  to  work  compatible  with  their  con- 
dition and  get  busy  on  the  improvement  of  that  condition."  31 
In  this  connection  might  be  cited  the  case  of  one  Philadelphia 
manufacturer  of  bolts,  nuts,  and  rivets,  who  has  found  by 
changing  a  foot  treadle  to  a  hand  motion  that  men  twisted 
with  spinal  meningitis  and  otherwise  crippled  make  better 
workmen  than  physically  fit  employes.46  The  Crocker- 
Wheeler  Company,  manufacturers  of  electrical  supplies, 
has  taught  thirty  blind  people  how  to  wind  coils  for  arma- 
tures, a  process  in  which  the  sense  of  touch  is  all-important. 
The  Pennsylvania  State  Bureau  of  Employment  recently 
studied  the  case  of  "  a  man  paralyzed  in  both  ankles  and 
prevented  by  the  physical  examination  test  from  securing 
work  at  his  trade  of  machinist  in  the  large  industrial  plants. 
He  was  successfully  placed  in  a  smaller  shop  on  special 
work  of  an  intricate  character.47 

Proper  places  can  be  found  even  for  persons  suffering 
from  tuberculosis  or  in  whom  the  disease  has  been  recently 
arrested.  The  Cincinnati  Bureau  of  the  Handicapped  is 
placing  many  of  this  class  as  well  as  finding  suitable  occupa- 
tions for  those  who  suffer  from  various  other  handicaps.47 
The  continued  financial  success  of  the  semi-philanthropic 
workroom  under  the  direction  of  the  Committee  on  the 
Jewish  Tuberculous  is  another  indication  of  the  possibility 
and  even  advantage  of  using  persons  not  in  perfect  health.48 
The  Metropolitan  Life  Insurance  Company  has  in  its  Home 
Office  several  hundred  clerks  who  have  at  some  time  been 
treated  for  tuberculosis. 


62  THE   HUMAN   FACTOR   IN   INDUSTRY 

A  change  in  attitude  toward  medical  examinations  is 
imminent.  The  medical  examination  at  entrance  will 
gradually  assume  its  real  function  as  a  means  of  proper 
placing.  It  will  result  in  benefit  to  both  employer  and 
applicant.  The  largely  justifiable  hostility  of  labor  leaders 
that  has  accompanied  its  introduction  will  tend  to  disap- 
pear. 

References.  —  Two  kinds  of  references  are  ordinarily 
required,  (1)  character  references  and  (2)  references  from 
former  employers.  The  first  are  of  comparatively  little 
value  because  the  witnesses  are  not  disinterested.  But 
employers  ordinarily  ignore  the  second  group  as  well  be- 
cause of  the  difficulty  in  securing  any  but  vague  and  in- 
different replies  to  their  requests  for  information.  Further, 
it  has  been  suggested  that  it  will  always  be  dangerous  to 
rely  on  even  the  most  complete  reference,  since  a  man  who 
fails  with  one  employer  may  succeed  in  a  new  environment. 

General  references,  addressed  to  "  whomever  it  may  con- 
cern," are  no  longer  credited.  Progressive  employers  do 
not  give  them  but  are  offering  to  furnish  references  upon  the 
request  of  employers.  If  employers  answered  queries 
about  former  employes  frankly  and  carefully,  they  would 
not  only  really  help  the  employe,  by  preventing  his  being 
placed  in  work  for  which  he  is  unfit,  but  in  the  end  their 
frankness  would  be  reciprocated.  The  Edison  Company 
has  forms  for  this  purpose,  on  one  of  which  the  foreman  of 
the  former  employe  supplies  information  as  to  the  character 
of  the  service  rendered  and  on  another  the  Employment 
Bureau  makes  entries  regarding  dates  of  employment, 
causes  of  leaving,  and  records.  If  a  stamped,  addressed 
envelope  is  inclosed,  together  with  a  form  containing  specific 
questions,  more  answers  and  more  reliable  information  will 
be  secured. 

Value  of  Definite  Questions.  —  The  principal  difficulty 
with  the  letters  now  sent  to  previous  employers  lies  in  the 


HIRING  AND   HOLDING  63 

vagueness  of  the  questions  asked.  A  short  questionnaire 
has  been  adopted  by  Cheney  Brothers  asking  the  "  former 
employer  simply  to  check  off  in  spaces  provided,  the  nature 
of  the  applicant's  service  as  to  work,  conduct,  ability, 
and  character."  In  ninety-five  per  cent  of  the  cases  in- 
vestigated they  receive  sufficient  information.18  The  ref- 
erence letter  form  used  by  the  War  Department  is  brief 
and  yet  definite  and  is  exceedingly  suggestive.  This  allows 
space  to  place  a  check  mark  under  Very  Good,  Good, 
Fair,  Poor,  Very  Poor  for  certain  distinct  qualifications 
such  as  "Trustworthiness,"  "Ability  to  manage  other 
workers,"  "Skill  in  a  given  occupation,"  etc.  Unless  such 
a  plan  of  asking  pointed  and  definite  questions  is  adopted, 
former  employers  answer  carelessly  and  usually  favorably, 
if  at  all. 

When  the  emphasis  is  placed  on  the  proper  placement  of 
the  individual,  references  from  previous  employers  will  be- 
come increasingly  valuable,  and  their  purpose  of  the  past 
—  to  weed  out  labor  agitators  and  floaters  —  will  become 
of  minor  importance. 

Inducting  and  Retaining  the  Employe 

The  period  immediately  following  the  selection  of  a  new 
employe  is  a  difficult  one.  It  will  determine  in  a  large 
measure  his  future  success.  The  main  responsibility  for 
making  this  period  as  easy  as  possible  rests  on  the  employ- 
ment manager.  The  first  impression  of  the  new  plant  is 
the  one  that  he  has  given;  in  the  mind  of  the  Dew  employe 
he  is  all-import  mil  because  in  his  hands  lay  the  giving  of  the 
job.  Every  effort  must  be  made  to  make  the  impression  a 
favorable  one.  In  the  final  interview  the  details  of  the  or- 
ganization should  be  made  clear  and  the  general  spirit  of 
the  employer  conveyed.  But  further  effort  is  necessary 
successfully  to  induct    the  worker.      Printed  rules,  instruc- 


64  THE   HUMAN   FACTOR   IN   INDUSTRY 

tions,  and  suggestions  are  of  distinct  help  and  are  widely 
used. 

Employes'  Handbooks.  —  It  is  difficult  to  make  printed 
instructions  as  interesting  to,  or  as  popular  with,  the  em- 
ploye as  with  the  employment  manager.  They  should  be  as 
brief  and  as  concise  as  possible,  and  the  fewer  the  instruc- 
tions and  the  more  complete  the  information  brought  within 
the  covers  of  one  or  two  booklets,  the  more  sure  are  they 
to  command  attention.*  The  Dennison  Manufacturing 
Company  and  Curtis  Publishing  Company  have  the  em- 
ploye's name  printed  on  the  cover  of  the  rule  book,  which  is 
given  to  him  immediately  on  engagement,34  so  that  he  will 
the  more  readily  carry  it  home  and  read  it.  The  Common- 
wealth Edison  Company  require  the  employe  to  sign  a  re- 
ceipt for  the  book  stating  that  "the  policies,  methods,  and 
rules  of  the  company,  as  set  forth  therein  have  been  care- 
fully studied."  This  receipt  must  reach  the  employment 
department  within  five  days  after  his  entering  the  com- 
pany's service. 

Follow-up  Work.  —  In  order  to  impress  the  new  employe 
with  the  real  interest  that  the  corporation  has  in  his  future, 
the  employment  manager  frequently  introduces  him  to  the 
foreman  or  other  immediate  superior.  It  then  becomes 
the  latter's  duty  to  make  further  introductions  and  to  ex- 
plain the  work  in  detail.  Every  effort  should  be  made  to 
make  the  new  worker  "  feel  at  home  "  and  appreciate  the 
importance  of  his  work.  In  order  to  eliminate  the  "  sky- 
larking "  and  practical  joking  at  the  expense  of  a  new  em- 
ploye, it  has  been  suggested  that  a  fellow  worker  be  ap- 
pointed as  temporary  guardian.  To  overcome  any  pre- 
liminary difficulties  that  may  arise,  "  follow-up  interviews  " 
are  held  within  a  few  weeks  after  the  employe  starts  work, 

*  An  excellent  book  is  used  by  the  Miller  Lock  Company.  It  combines 
information  on  hours  of  work,  wage  scales,  and  methods  of  payment,  with 
safety-first  advice  and  an  explanation  of  the  medical,  educational,  and  social 
advantages  offered  by  the  company.     (1917.) 


HIRING  AND   HOLDING  65 

by  the  employment  officials  of  the  Eastern  Manufacturing 
Company,  the  German-American  Button  Company,  and  the 
Curtis  Publishing  Company,  among  others. 

The  follow-up  function  of  the  employment  bureau  re- 
solves itself  into  the  difficult  one  of  vocational  guidance. 
The  esprit  de  corps  of  the  entire  plant  depends  on  the  em- 
ployment manager's  skill  in  directing  the  promotion  of  the 
employe  as  rapidly  and  no  more  rapidly  than  his  ability 
warrants ;  in  adjusting  causes  of  difference  between  workers 
and  foremen ;  in  eliminating  general  causes  of  dissatisfac- 
tion ;  and  in  placing  a  "  misfit  "  or  failure  where  he  will 
"  make  good."  It  is  this  function  which  is  the  most  im- 
portant, least  developed  and  most  interesting  part  of  the 
work  of  a  centralized  employment  bureau. 

Tardiness  and  Absences  Causes  of  Labor  Loss.  —  Labor 
loss  attends  the  failure  to  keep  the  number  of  workers  on 
the  pay  roll  up  to  the  required  standard  for  every  work 
hour ;  the  employment  of  a  superfluous  number  of  workers  ; 
poor  attendance,  and  large  labor  turnover.*  Every  case  of 
lateness  or  absenteeism  means  a  drop  in  output,  while 
"  tardiness  is  incipient  absence  "  and  "  absence  is  incipient 
labor  turnover."  49 

Methods  of  Correcting  Bad  Attendance.  —  The  first  step 
in  reducing  absenteeism  or  tardiness  is  1  he  attendance  record. 
Knowledge  that  such  records  are  being  kept  in  itself  dis- 
courages malingering  or  unnecessary  absences.  If  a  time 
clock  is  used,  it  maybe  placed  at  I  he  oil  ranee  of  a  small  plant. 
If  the  working  force  is  large,  however,  to  avoid  congestion 
time  clocks  are  often  provided  for  each  department.  On 
clock  cards  or  special  forms  kept  in  departmental  files,  the 
employment  manager  or  foreman  may  record  reasons  for 
bad  attendance.     Daily  or  monthly  records  should  show  the 

*F<>r  methods  <>f  mmputinc  labor  lose  caused  by  variations  from  tln> 
standard  work  force  and  poor  attendance  see  Handbook  on  Employment 
Management,  U.  S.  Shipping  Board  Emergency   Fleel  Corporation,  Special 
Bulletin,  Labor  Loss ;    Phila.,  1918. 
F 


66  THE   HUMAN   FACTOR   IN    INDUSTRY 

number  of  employes  late  or  absent,  the  number  of  hours 
lost  by  each  and  the  reasons  for  absence,  whether  "  laid 
off,"  "  vacation,"  "  accident,"  "  sickness,"  "  family  rea- 
sons," "  grievance,"  "  unknown,"  all  of  which  may  be 
classified  also  as  avoidable  or  unavoidable. 

Making  Lateness  Difficult.  —  At  the  Midvale  Steel 
Company  ninety-five  per  cent  of  all  lateness  has  been  found 
to  occur  within  the  first  half  hour,  and  most  of  that  in  the 
first  ten  minutes.  Some  plants  lock  their  gates  at  a  cer- 
tain time  after  opening  hours  and  keep  them  locked  until 
the  end  of  the  work  period,  so  that  only  those  who  are  prompt 
are  allowed  to  work.  This  is  the  case  at  the  General  Electric 
Company  at  Lynn,  the  Fore  River  Shipbuilding  Company, 
the  Cleveland  Metal  Products  Company,  and  the  large  textile 
mills  at  Lowell.  At  the  Fore  River  Shipbuilding  Company, 
however,  a  late  employe  who  feels  that  he  has  an  excuse 
may  submit  it  to  the  chief  timekeeper  who  in  turn  refers 
it  to  the  foreman.  With  the  foreman's  permission  the  man 
is  admitted.  At  the  Strawbridge  and  Clothier's  Store  in 
Philadelphia  those  who  are  late  must  sign  a  slip  at  a  central 
desk,  a  system  which  has  reduced  lateness  from  between  5 
and  10  per  cent  to  2.5  per  cent.50 

Investigation  of  Absentees.  —  Home  visiting  for  the  in- 
vestigation of  absences  by  some  one  person  specially  dele- 
gated to  that  work  is  customary  in  many  large  plants.  Ab- 
senteeism has  been  estimated  to  range  from  2  per  cent  to 
10  per  cent  of  the  plant  enrollment.  One  person  by  careful 
planning  can  cover  about  twenty  calls  in  four  hours,  if  the 
calls  are  reasonably  near  each  other.  The  investigation  of 
all  absences,  therefore,  in  a  force  of  about  five  hundred  people 
will  require  the  full  time  of  one  person,  if  on  foot,  The  use  of 
an  automobile  saves  at  least  half  time  and  would  enable  one 
investigator  to  cover  the  needed  visiting  for  a  force  of  one 
thousand.  The  United  States  Public  Health  Service  advises 
against  the  extravagance  of  using  the  plant  nurse  or  doctor 


HIRING   AND   HOLDING  67 

for  visiting  absentees  other  than  those  known  to  be  ill. 
In  some  plants  this  is  done,  however,  to  make  it  appear 
that  the  visit  is  made  from  a  desire  to  give  help  rather  than 
investigate.  A  tactful  investigator  may  avoid  antagoniz- 
ing the  employe  just  as  easily  and  may  report  to  the  doctor 
or  nurse  when  medical  attention  is  needed.49  If  it  seems 
desirable  to  know  the  reason  for  absence  immediately,  a 
corps  of  visitors  will  be  needed.  By  encouraging  the  em- 
ployes to  report  necessary  absences  in  advance  and  to  send 
word  by  telephone  or  a  fellow  employe  on  the  day  of  ab- 
sence, or  by  investigating  absences  only  after  a  lapse  of  a 
few  days,  the  necessary  visiting  can  be  much  reduced. 

Individual  Records  and  Bonuses.  —  "  Docking  "  an  em- 
ploye's wages  in  excess  of  time  lost  is  not  only  illegal  but 
ineffective.  Regular  monthly  bonuses  paid  every  employe 
in  addition  to  wages  from  which  deductions  are  made  for 
absenteeism  have  proved  a  valuable  incentive  to  good  time- 
keeping. An  employe  of  the  Metropolitan  Life  Insurance 
Company,  receiving  not  more  than  $60  a  week  who  has 
worked  a  full  calendar  year  and  lost  no  time  through  absence 
or  tardiness,  is  allowed  a  bonus  of  a  week's  salary.  Time 
lost  for  any  cause  is  charged  against  the  bonus  and  a  pro 
rata  deduction  is  made  therefrom  on  the  basis  of  41  h  hours 
per  week.  When  the  total  time  lost  aggregates  21  hours, 
or  the  number  of  times  tardy  is  10  or  over,  no  bonus  is  paid. 
The  possible  weakness  in  this  system  is  that  the  period  of 
bonus  payment  may  be  too  long.  Small  monthly  bonuses 
would  possibly  attract  more  attention.51  In  an  eastern  pub- 
lishing house  each  department  has  its  own  time  clock  which 
each  employe  rings  twice  for  five  days  in  the  week  and  once 
on  Saturday.  The  percentage  of  tardiness  to  the  total  Dumber 
of  rings  is  estimated  monthly  for  each  department  and  de- 
partmental records  prominently  posted.  This  same  percentage 
is  recorded  for  each  employe  and  referred  to  when  individual 
promotions  or  raises  in  salary  are  under  consideration.50 


68  THE   HUMAN   FACTOR   IN   INDUSTRY 

Turnover.  —  To  get  rid  of  an  employe  is  far  easier  than 
to  help  him  "  make  good,"  in  the  short  run ;  and  to  let 
him  go,  less  troublesome  than  to  find  out  in  advance  any 
condition  of  dissatisfaction  and  to  attempt  to  remedy  it. 
But  the  formulation  of  turnover  statistics  for  his  plant  will 
convince  the  easy-going  and  unsuspecting  employer  of  a 
startling  weakness  in  his  organization.  The  National 
Employment  Managers'  Conference  in  1918  agreed  upon  the 
following  definition  and  method  of  computing  labor  turn- 
over. 

Definition  : 

Formulating  Turnover  Statistics.  —  1.  Labor  Turnover 
for  any  period  consists  of  the  number  of  separations  from 
service  during  that  period.  Separations  include  all  quits, 
discharges,  or  lay  offs  for  any  reason  whatsoever. 

2.  Percentage  Labor  Turnover  for  any  period  is  the  ratio 
of  the  total  number  of  separations  during  the  period  to  the 
average  number  of  employes  on  the  force  report  during  that 
period.  The  force  report  gives  the  number  of  men  actually 
working  each  day  as  shown  by  attendance  records. 

Computation  : 

1.  Find  the  total  number  of  separations  for  the  period 
considered. 

2.  Divide  by  the  average  of  the  number  actually  work- 
ing each  day  throughout  the  period. 

3.  Multiply  by  the  proper  factor  to  reduce  to  a  yearly 
basis. 

Example.  —  Total  number  of  separations  during  week,  300. 
Daily  force  reports  (workers  actually  on  the  job),  M.,  1020 ;  T., 
1065;  W.,  1070;  Th.,  1035;  P.,  1040;  S.,  990.  Average  for 
week  =  1037.    Percentage  labor  turnover,  Ts5%°7  x  52  =  1504  per  cent. 

Comparatively  few  employers  have  realized  that  for  every 
man  on  their  pay  roll  they  were  probably  hiring  at  least  one 


HIRING  AND   HOLDING  69 

new  man  every  year.  This  100  per  cent  turnover  was  very 
general  even  before  the  war,  and  is  a  sufficient  argument  to 
cause  any  employer  to  study  the  reason  for  his  plant  turn- 
over. Many  turnover  figures  have  been  larger.  The 
Federal  Commission  on  Industrial  Relations  found  in  an 
investigation  of  the  cloak  and  suit  industry  of  New  York  in 
1914,  that  in  16  occupations  4000  people  were  employed  to 
maintain  a  maximum  working  force  of  1952. 52  An  auto- 
mobile factory  was  reported  in  1912  to  have  hired  21,000 
men  to  maintain  an  operating  force  of  10,000.52  In  1913 
the  Ford  Motor  Company  hired  52,445  men  to  maintain  a 
total  of  14,000  employes.8  Such  figures  might  be  cited  ad 
infinitum  with  reference  to  department  stores,  mailing  houses, 
lumber  camps,  or  steel  foundries,  and  all  other  industries, 
operating  in  the  pre-war  period  of  comparatively  normal 
industrial  conditions.*  52 

Efforts  have  been  made  to  estimate  the  actual  cost  of 
labor  turnover  from  the  standpoint  of  industry.  The  cost 
should  include,  according  to  Mr.  Fisher,63  the  expense  of, 

(1)  hiring  and 

(2)  training  new  employes, 

(3)  of  wear  and  tear  on  equipment  operated  by  new 
hands, 

(4)  of  reduced  production  and 

(5)  the  excess  plant  equipment  needed  to  compensate  it, 

(6)  of  wasted  materials,  and 

(7)  increased  accidents. 

The  cost  of  advertising  for  workers,  however,  and  the  less 
tangible  expense  of  lost  sales  due  to  spoiled  work  or  delayed 
schedules,  the  reduced  vitality  and  efficiency  in  the  workers 
due  to  the  "peddling"  of  their  labor,  and  the  inevitable 
absence  of  esprit  de  corps  and  concerted  effort  where  there  is 
a  shifting  working  force  should  also  be  included. 

The  lowest  estimate  made  of  the  cost  fco  industry  of  losing 

*  During  the  war,  turnover  figures  exceeded  all  previous  bounds. 


70  THE   HUMAN   FACTOR   IN   INDUSTRY 

and  replacing  one  worker  is  $25.00.*  More  commonly 
$50.00  is  the  estimate,  but  some  employers  place  it  at 
$200.00,54  and  Mr.  Fish  of  the  Norton  Company  gives  be- 
tween $300.00  and  $450.00  as  the  probable  net  cost  of  re- 
placing one  of  their  pieceworkers.  Obviously  the  cost 
varies  in  every  case  and  with  every  grade  of  labor  involved, 
the  only  constant  factor  being  the  clerical  work  of  entering 
a  new  employe  on  the  pay  roll  and  taking  the  old  one  off. 
Deere  and  Company  claim,  for  instance,  that  it  costs  $1000  to 
break  in  a  new  foreman,  barring  accidents.54  Calculating  on 
a  $25.00  per  man  basis,  the  Ford  Company's  turnover  in 
1913  cost  a  minimum  of  $1,261,200  and  probably  more  than 
$2,000,000. 8  An  interesting  analysis  of  turnover  costs 
was  recently  made  by  an  efficiency  engineer  in  a  Pennsyl- 
vania munitions  plant,  where  the  loss  in  one  year  due  to 
hiring  6106  men  to  maintain  a  quota  of  1054  was  estimated 
far  to  exceed  $126,300,  which  covered  only  the  cost  of  hir- 
ing, instruction,  damage,  and  reduced  production,  on  a 
basis  of  $25.00  per  man  hired.  This  omitted  the  cost  of 
excess  plant  expense,  one  item  of  which  was  ascertained 
to  be  $32,400. 55  The  gap  between  the  possible  efficiency 
of  a  stable  force  and  the  actual  efficiency  was  claimed  to  be 
equivalent  to  an  underproduction  of  some  20,000  pounds  of 
powder  daily,  or  50  per  cent  of  the  amount  actually  pro- 
duced. Such  figures  as  these,  although  imperfect,  are  gen- 
erally accepted  by  business  men  as  an  understatement  of  a 
great  and  unnecessary  waste  to  which  we  are  acquiescing 
in  our  present  industrial  organization.  No  attempt  has  as 
yet  been  made  to  measure  the  cost  to  the  worker  and  to  his 
family  of  this  continual  shifting. 

Analyzing  and  Reducing  Turnover.  —  A  recent  examina- 
tion of  100,000  causes  of  leaving  employment  in  several 

*  For  methods  of  determining  the  cost  of  labor  turnover  see  Mr.  Fisher's 
article  in  the  Bulletin  of  the  United  States  Bureau  of  Local  Statistics,  No. 
227,  p.  60. 


HIRING   AND   HOLDING  71 

representative  plants  of  the  country  revealed  that  74.6 
per  cent  quit  of  their  own  accord,  12.2  per  cent  were  laid 
off,  13.2  per  cent  were  discharged.56  The  large  percent- 
age of  those  quitting  is  probably  abnormal  and  due  to  the 
unusual  industrial  conditions  of  war  time.  The  study  of 
reasons  for  leaving  is  of  vital  importance  in  reducing  turn- 
over. A  rubber  company  employing  12,000  men  found,  in 
the  analysis  of  their  turnover  of  one  year,  that  a  large  per- 
centage of  the  men  left  because  of  the  monotony  of  the 
work.12  Such  a  condition  might  have  been  remedied  by 
routing  the  worker,  shortening  hours,  or  providing  fre- 
quent intervals  of  rest,  and  be  less  costly  than  allowing 
the  turnover  to  continue.  The  Dennison  Manufacturing 
Company  in  1915  reduced  the  number  of  employes  leaving 
because  of  dissatisfaction  with  either  pay  or  work  to  17?  per 
cent  of  the  number  of  those  leaving,  dissatisfied,  in  1913. 
This  was  due  to  the  work  of  the  employment  department 
installed  in  1914. 6 

According  to  E.  C.  Gould,  a  factory  employing  some 
20,000  men  found  20  per  cent  of  those  who  left  them  in 
1917  (66  per  cent  reported  reasons  for  leaving)  doing  so 
because  of  "  working  conditions."  The  reasons  classed  as 
"  personal,"  or  "  needed  at  home,"  may  be  attributed  to 
causes  over  which  the  company  had  no  control.  But  these 
were  only  21  per  cent  of  the  total  reasons  given.57 

The  usual  reasons  for  leaving  employment  may  be  grouped  : 

I  work 
pay 
personal  reasons ; 

I  business  or  seasonal 
fluctuations 
discipline 


Involuntary, 
because 


.  discharged  on  accounl  of 


unfitness  for  work 
personal  character 


72  THE    HUMAN    FACTOR    IN    INDUSTRY 

A  committee  of  the  Boston  Managers'  Association,  of 
which  Mr.  E.  H.  Fish  was  chairman,  has  suggested  a  valu- 
able form  for  analyzing  causes  of  turnover.58  This  makes  it 
possible  to  show  the  reasons  for  leaving  under  the  headings 
of  "  Left  of  own  accord,"  "  Discharged,"  "  Laid  off  "  and 
"  Transferred."  These  are  again  subdivided  into  32  detailed 
headings. 

From  the  use  of  such  a  form  one  could  doubtless  draw 
valuable  conclusions.  If  the  causes  of  leaving  were  grouped 
under  the  more  general  classifications  of  (1)  "  transfers 
within  the  Company,"  (2)  "  causes  of  leaving  for  which  the 
Company  was  not  to  blame,"  and  (3)  "  other  causes," 
the  result  might  be  of  even  greater  value.  If  it  is  of  no 
particular  importance  to  know  that  a  change  in  staff  is 
necessary  because  of  a  death  from  natural  causes,  or  be- 
cause a  younger  employe  has  returned  to  school ;  it  is  of 
prime  importance  to  analyze  discharge  and  carefully  to 
consider  the  cases  of  persons  who  leave  because  of  unsatis- 
factory working  conditions. 

Interviews  with  Those  Leaving. — Such  statistical  analyses 
will  throw  light  on  the  main  problems  of  turnover  that 
confront  the  individual  plant.  This  composite  picture 
of  the  maladjustments  existent  in  the  personnel  of  the  plant 
will  indicate  remedies  in  some  instances,  in  others  it  will 
direct  further  study.  But  each  individual  case  of  leaving 
must  be  carefully  considered.  The  underlying  cause  should 
be  sought  out  and  removed  whenever  possible.  No  one 
leaving  voluntarily  should  be  allowed  to  draw  his  final 
pay  without  an  interview  with  the  employment  manager. 
This  will  mean  that  every  employe  leaving  the  plant  has 
discussed  his  difficulties,  not  only  with  his  immediate  su- 
perior, but  with  an  impartial  third  person.  There  will  be 
exceptions,  of  course,  where  there  is  no  system  of  deferred 
payment  and  where  the  employe  simply  disappears  after 
pay  day. 


HIRING   AND   HOLDING  73 

Transfers.  —  By  obtaining  interviews  with  those  leaving 
voluntarily  the  employment  department  may  often  effect 
adjustments  by  transfers  and  promotions.  The  larger 
the  organization  the  more  simple  becomes  the  problem  of 
transfer  to  more  congenial  or  otherwise  more  satisfactory 
work.  The  Ford  Motor  Company  transferred  in  one  year 
2847  men  who  had  given  notice  of  leaving.12  What  the 
employment  department  may  accomplish  is  indicated  by 
the  work  of  the  department  of  the  Dennison  Manufactur- 
ing Company,  where  there  were 

219  Transfers  Effected  in  1915.6 

(1)  For  promotion  —  40  per  cent ; 

(2)  By  request  —  4  per  cent ; 

(3)  Because  of  failure  in  first  position  —  18  per  cent ; 

(4)  Because  of  personal  demands  —  29  per  cent ; 

(5)  For  miscellaneous  reasons  —  9  per  cent. 

The  small  plant  can  also  accomplish  much  in  this  field. 
Slight  adjustments  in  occupations  will  often  suffice  to  eradi- 
cate difficulties,  and  although  a  large  transfer  rate  indicates 
conscientious  effort  on  the  part  of  the  employer  to  retain 
his  employes,  it  may  also  be  a  sign  of  restlessness,  instability, 
and  inefficiency.  Each  transfer  must  be  carefully  considered 
so  that  it  may  benefit  both  employer  and  employe. 

Promotions.  —  Promotions  are  another  form  of  transfers. 
Facilitating  promotions  is  one  of  the  prime  functions  of 
any  employment  bureau.  Recognition  of  ability  saves  the 
company  not  only  the  expense  of  importing  talent  but  fre- 
quently the  loss  of  a  dissatisfied  employe1  as  well.  One 
firm's  employment  office  regularly  reviews  the  wage  rates 
and  in  all  cases  which  have  not  been  recent ly  advanced, 
conference  follows  with  the  foreman.12  Cheney  Brothers 
uses  the  results  of  the  entrance  tests  as  a  basis  for  promo- 
tion, choosing  clerks,  for  instance,  from  the  mill  operatives 
who  show  ability  in  simple  mathematics,  general  intelli- 
gence, speed,  and  accuracy.18    The  Western  Electric  Com- 


74 


THE    HUMAN   FACTOR   IN   INDUSTRY 


pany  considers  the  next  man  in  line  in  every  vacancy  before 
going  outside  for  a  new  employe,  and  it  has  been  done  so  far 
with  success.23  Tn  Germany  65  per  cent  of  the  men  in  tech- 
nical and  managerial  positions  come  up  from  the  ranks  in 
the  foremost  industries.12 

The  effect  which  the  establishment  of  the  employment 
bureau  has  had  on  the  provisions  made  for  transfer  and  pro- 
motion is  indicated  in  the  following  analysis  of  Mr.  Kelley's.4 


Op  12  Firms  without 

Of  18  Firms  with 

Separate  Employment 

Separate  Employment 

Departments 

Departments 

1,  or    8.3 

per  cent 

7. 

or  38.8  per  cent 

had  definite  plans  for 
promotion 

2,  or  16.6 

per  cent 

13, 

or  72.2  per  cent 

informed  employes  of 
opportunities  for  ad- 
vance 

1,  or    8.3 

per  cent 

14, 

or  77.7  per  cent 

had  written  job  specifi- 
cations 

5,  or  41.6 

per  cent 

14, 

or  77.7  per  cent 

provided  for  transfers 
and  try-outs  in  other 
departments 

5,  or  41.6 

per  cent 

7, 

or  38.8  per  cent 

gave  the  foreman  full 
power  of  discharge 

4,  or  33.3 

per  cent 

15, 

or  83.3  per  cent 

investigated  cases  of 
discharge 

4,  or  33.3 

per  cent 

13, 

or  72.2  per  cent 

investigated  majority  of 
cases  of  "  quitting  " 

Recommendations.  —  It  is  only  in  a  matter  of  purely 
personal  concern  which  withdraws  the  worker  from  the 
plant,  such  as  a  change  of  residence,  for  other  than  reasons 
of  inadequate  housing  facilities  in  the  region  of  the  plant, 
or  a  woman  employe's  marriage,  etc.,  that  the  employ- 
ment bureau  is  completely  helpless.  But  when  an  employe 
is  leaving  voluntarily,  whether  for  better  opportunities 
than  can  be  offered  in  the  plant,  or  for  personal  reasons, 
it  is  important  that  he  go  with  the  "  fullest  good  will  "  of 


HIRING   AND   HOLDING  75 

the  company.  "  Perhaps,"  says  Mr.  Williams,  of  the  New 
York  Edison  Company,  "  the  greatest  encouragement  to 
faithful  service  is  the  realization  that  it  will  be  recognized 
outside  as  well  as  within  the  company."  The  employ- 
ment bureau  must  be  ready  at  all  times  to  give  frank, 
courteous  responses  to  queries  of  references  for  former  em- 
ployes. 

Location  and  Arrangement  of  Employment  Office.  — 
For  the  sake  of  convenience  the  employment  office  should 
be  located  on  the  ground  floor.  Adequate  and  comfortable 
quarters  should  be  provided.  Even  a  small  department 
should  have  separate  waiting  and  interviewing  rooms. 
In  large  plants  there  is  often  a  preliminary  interview  room  as 
well  as  a  final  interview  room.  Any  unavoidable  waiting 
period  before  interviews  should  be  made  as  pleasant  as 
possible  for  the  applicants  by  the  provision  of  agreeable 
surroundings  and  comfortable  seats.  In  laying  out  the 
department  it  should  be  borne  in  mind  that  here  the  appli- 
cant receives  his  first  impression  of  the  organization,  and 
the  first  impression  may  be  a  lasting  one. 

Handling  Applicants.  —  Two  methods  of  handling  ap- 
plicants are  used :  a  doorman  gives  consecutive  numbers 
to  the  applicants  in  the  order  in  which  they  arrive  and  by 
which  they  are  then  interviewed ;  or  the  applicants  all  fall 
into  a  single  file  leading  to  the  interview  room.59 

The  Record  of  Service.  —  Prerequisite  to  any  systematic 
development  of  an  efficient  working  force  is  the  preparation 
of  filed  records  of  employes  including  all  data  relative  to 
their  history  before  and  since  entering  the  firm's  employ, 
such  as  application  blanks,  references,  medical  and  mental 
examination  reports,  efficiency  records,  accidents  and  sug- 
gestions records,  transfer  and  promotion  slips,  etc.  Usually 
there  is  space  provided  on  the  cover  of  the  folder  in  which 
such  data  are  filed  to  list,  in  addition  to  the  employe's  name 
and  number,  the  department   in  which  he  works,  the  posi- 


76  THE   HUMAN   FACTOR   IN   INDUSTRY 

tion  he  is  filling,  his  wage  rate,  the  date  of  his  engagement 
and  of  subsequent  transfers  or  promotions,  the  date  of  his 
release  and  the  reasons  for  his  release.  The  Avery  Com- 
pany reproduces  on  the  cover  of  the  folder  the  application 
blank  and  utilizes  the  inside  of  the  folder  for  the  record  of 
the  entrance  medical  examination  report  of  the  employe, 
thus  preventing  the  possible  loss  of  the  two  most  important 
records.  To  such  a  file  the  employment  department  will 
resort  for  information  about  any  employe  recommended  for 
discharge,  transfer,  or  promotion. 

Employment  Records.  —  The  necessary  files  for  an  em- 
ployment office  will  include  :  60 

1.  Application  blanks  of  future  employes. 

2.  Individual  records  of  present  employes. 

(a)  Past  history :  application  blank,  references,  medi- 
cal rating,  mental  rating. 

(6)  Transfers,  promotions,  changes  of  rate. 

(c)  Periodic  summary  of  individual's  pay  roll :  earn- 
ings (piecework),  bonuses,  latenesses,  absences. 

3.  Records   of    ex-employes :     individual    records,    leav- 

ing slips,  with   reasons  for  leaving   and   other 
information  obtained. 

4.  Numerical  file :    cross  index  for  badge  or  identifica- 

tion —  check  numbers. 

5.  Daily  blotter  of  men  hired  and  transferred  (for  com- 

piling monthly  reports). 

6.  Daily  blotter  of  men  removed  from  pay  roll. 


CHAPTER  IV 
EDUCATION 

Need  for  Industrial  Education.  — "  Seven  million 
workers  in  American  manufacturing  establishments  pro- 
duce about  one  third  of  then  potential  output  and  three 
out  of  every  four  workers  contribute  less  than  the  average 
production  of  the  four,"  was  the  startling  statement  of 
Charles  T.  Clayton,  director  of  the  United  States  Training 
Service  in  the  Department  of  Labor  at  Washington.1  It 
has  been  indisputably  proved  that  this  is  in  large  measure 
due  to  the  lack  of  training  of  industrial  workers,  a  lack 
which  has  existed  only  since  the  breakdown  of  the  old  ap- 
prenticeship system,  which  provided  general  training  in  all 
branches  of  the  trade  as  well  as  the  necessary  background 
of  theoretical  education. 

The  problem  of  modern  education  has  been  to  find  a  sub- 
stitute for  this  system.  At  present  there  is  a  growing  realiza- 
tion that  even  the  technical  and  trade  colleges  and  schools 
have  not  fully  met  the  situation  because  though  technical 
knowledge  is  supplied,  practical  experience  is  lacking.  Dean 
Schneider  of  the  University  of  Cincinnati  has  tried  to  com- 
bine the  theoretical  training  with  the  practical  work  in  the 
College  of  Engineering  at  Cincinnati.  The  present  move- 
ment for  vocational  training  in  public  education  coupled 
with  the  part-time  school  system  is  an  attempt  to  give  to 
the  mass  of  workers  some  of  the  benefits  of  the  apprentice- 
ship system  by  fitting  them  for  and  placing  them  in  the 
proper  industrial  niche. 

Public  Provision.  —  Before  the  war,  Germany,  alone  of 
all  nations,  had  a  widespread   system  of   public  industrial 

77 


78  THE   HUMAN   FACTOR   IN   INDUSTRY 

education.  There  children  between  the  ages  of  14  and  18 
were  compelled  to  attend  trade  continuation  schools  for 
eight  or  ten  hours  each  week  during  work  hours.2  The  re- 
sults obtained  gave  impetus  to  the  movement  for  voca- 
tional education  in  other  industrial  countries  and  moved 
both  private  and  public  agencies  to  a  renewed  attack  on  the 
problems  involved.  In  England  the  new  Education  Bill 
requires  children  employed  in  non-essential  occupations  to 
attend  vocational  schools  until  they  are  16  years  of  age. 
In  other  words,  the  law  aims  to  give  each  individual 
a  mental  background  and  training  in  the  arts  and  crafts 
before  allowing  him  to  take  up  a  distinct  vocation.  After 
16  years  of  age  the  child  may  become  a  wage  earner,  but 
until  eighteen  must  attend  continuation  schools  for  three 
hundred  and  twenty  hours  a  year.3  In  these,  the  studies 
are  directly  connected  with  the  industrial  occupation. 
In  the  United  States  the  Federal  Government  subsidizes 
trade,  part-time  and  continuation  schools  in  the  separate 
States.  This  has  caused  a  great  increase  of  public  activ- 
ities in  this  connection,  whether  independent  or  in  con- 
junction with  industry.  But  to  fill  existing  gaps  and  to 
give  specialized  training,  many  industrial  organizations  have 
found  it  necessary  and  of  value  to  develop  training  facili- 
ties in  their  own  plants.  General  vocational  and  indus- 
trial education  as  well  as  general  elementary  education  in 
industry  is  a  field  whose  limits  are  continually  decreasing. 

Employers'  Provision  for  Elementary  Education  Un- 
necessary. —  Although  it  is  impossible  to  state  how  far 
public  agencies  will  assume  the  full  responsibility  for  voca- 
tional and  industrial  education,  the  tendency  is  for  it  to  be 
taken  out  of  private  hands.  The  Federal  Revenue  Law 
makes  the  employment  of  children  under  fourteen  years  of 
age  impossible.  In  a  number  of  the  States  the  withdrawal 
of  children  from  wage-earning  occupations  and  their  reten- 
tion in  school  is  enforced  by  legislation,  thus  eliminating 


EDUCATION  79 

the  need  for  provision  of  elementary  education  on  the  part  of 
employers  and  placing  the  responsibility  to  an  increasing 
extent  on  public  officials.  In  those  few  States  which  are 
backward  in  educational  development,  employers  may  feel 
that  it  is  to  their  advantage  to  maintain  schools  for  future 
employes,  as  does  the  Pelzer  Manufacturing  Company  in 
South  Carolina,  which  supports  a  school  for  seven  hundred 
children.4  But  in  general,  it  is  inadvisable  and  unnecessary 
for  employers  to  organize  elementary  education  classes 
unless  to  supplement  the  work  of  the  public  schools  in  the 
Americanization  of  foreigners. 

Industry's  Part  in  Industrial  Education.  —  On  the  other 
hand,  no  matter  how  extensive  may  be  the  vocational  work 
done  by  public  agencies,  industry  will  always  play  a  large 
part  in  selecting  and  training  efficient  workers.  It  is  not 
possible  to  rely  solely  on  the  market  or  on  the  public  school 
for  skilled  workmen.  In  the  first  place,  the  supply  is  in- 
sufficient, and  secondly,  processes  and  conditions  of  pro- 
duction are  peculiar  to  each  plant.  Again,  in  the  final 
analysis,  technical  skill  and  even  vocational  selection  can 
only  be  secured  in  the  factory  workshop.  The  school  shop 
cannot  reproduce  in  minute  detail  the  machinery  and  con- 
ditions of  commercial  production.  The  pupil  must  be  put 
to  work  in  a  real  shop,  on  a  real  job,  before  his  fitness  for 
any  given  kind  of  work  can  be  determined,  and  this  try-out 
process  may  have  to  be  continued  for  a  considerable  time 
and  in  a  number  of  occupations  before  the  pupil's  industrial 
niche  is  found.  This  does  not  mean  that  the  trade  school, 
pre-vocational  classes  and  psychological  examination  have 
no  role  to  play  in  industrial  placement.  Their  role  i<  to 
discover  native  intelligence  and  tendencies,  but  the  pupil's 
final  efficiency  depends  so  much  on  his  individual  tempera- 
ment and  on  his  reaction  to  his  environment  that  it  is  im- 
possible to  rely  on  make-believe  shopwork  or  on  any  Bhorl 
preliminary  test  for  a  just  or  complete  estimate  of  ability 


80  THE   HUMAN   FACTOR   IN    INDUSTRY 

Moreover,  as  Dean  Schneider  points  out,  the  young  worker 
is  in  a  process  of  development,  and  what  he  likes  and  does 
well  at  sixteen  he  may  heartily  dislike  and  do  ill  at  the  age  of 
twenty.5  Because  of  these  considerations,  employers,  in  their 
attempt  to  fit  the  job  to  the  man  and  the  man  to  the  job, 
are  beginning  to  try  out  new  employes  on  various  operations 
in  the  shop  or  in  a  special  workroom  in  the  factory  or  busi- 
ness house,  before  placing  them  permanently.  Public  voca- 
tional schools  are  asking  employers  to  take  their  pupils  for 
part-time  employment,  so  that  the  pupil  may  experience 
his  trade  under  actual  conditions,  while  learning  certain 
operations  and  acquiring  the  theoretical  knowledge  in  the 
schoolroom. 

Technical  Training  Only  One  Part  of  the  Problem.  — 
In  addition  to  preparatory  training  it  devolves  upon  each 
industry  to  keep  its  emp^es  mentally  alive.  The  prob- 
lem of  individual  education  to-da}^  is  twofold.  It  is  neces- 
sary not  only  to  find  and  train  the  skillful  workman,  but 
also  to  compensate  the  great  number  of  machine  operatives 
for  the  monotony  of  their  work.  If  a  man's  body  is  "  ma- 
chinized  "  for  the  greater  part  of  the  day,  his  mind  must 
be  kept  compensatingly  alert,  so  that  he  may  retain  an 
energetic  interest  in  output,  be  on  the  qui  vive  to  avoid 
accidents,  react  swiftly  to  emergencies  and  adapt  himself 
to  the  constant  changes  in  methods  of  production.  For 
this  reason,  training  the  employe  for  promotion,  and  recrea- 
tional education  are  assuming  almost  the  importance  which 
has  been  attached  in  the  past  to  the  learning  of  a  trade. 
Mental  play  and  vitality  are  fostered  in  addition  to  manual 
or  trade  proficiency. 

Vocational  Training 

Breakdown  of  Apprenticeship  System.  —  The  develop- 
ment of  workers  with  the  basic  knowledge  of  an  entire 


EDUCATION  81 

industry  has  been  the  problem  of  our  technical  schools  and 
universities.  The  percentage  of  college  graduates  in  the 
population  is  still,  however,  negligible.  To  fill  the  need, 
trade  schools  under  both  public  and  private  auspices  have 
been  developed,  and  more  recently,  trade  training  has  been 
extended  to  the  lower  grade  of  public  schools.  Union  labor 
has  entered  the  field  of  training  by  the  development  of 
courses  such  as  those  given  by  the  International  Typographi- 
cal Union.  All  of  these  attempts  have  been  to  replace  what 
was  probably  the  most  valuable  phase  of  the  lost  apprentice- 
ship system  —  effective,  trained,  and  interested  workmen. 
The  difficulty  with  all  these  new  plans  has  beeD  the  em- 
phasis on  theoretical  training  and  the  lack  of  adequate 
compensating  practical  experience.  This  led  Dean  Schnei- 
der to  introduce  the  cooperative  course  into  the  College 
of  Engineering  of  the  University  of  Cincinnati,  which  pro- 
vided alternation  periods  of  work  in  commercial  shops  with 
classwork  in  the  college.  The  men  are  paired  so  that  the 
same  place  is  filled  for  two  weeks  by  the  one  man  and  the 
next  two  weeks  by  his  partner.  Over  one  hundred  manu- 
facturers are  cooperating  with  the  University  in  all  kinds 
of  industries  by  employing  these  students  and  paying  them 
regular  wages  for  time  spent  in  the  shop.6 

Part-time  Schools.  —  Other  engineering  colleges  have 
followed  this  experiment.  A  part -time  system  is  being 
successfully  applied  in  the  High  School  in  Fitchburg,  Mass., 
Solvay,  N.  Y.,  York,  Pa.,  and  New  York  City.  Paired 
pupils  attend  school  or  go  to  work  alternate  weeks  or  fort- 
nights. "Coordinators"  visit  the  factories  or  commercial 
houses  to  see  that  the  work  given  the  pupils  properly  fills  out 
the  school  program  and  provides  the  Deeded  experience.7 
In  New  York  City  in  June,  1918,  there  were  six  hundred 
high-school  pupils  on  part  time.8 

Benefits  of  Part  time  System.  —  The  actual  benefits 
from  such  training  are  intangible,  though  real  both  to  manu- 


82  THE    HUMAN    FACTOR    IN    INDUSTRY 

facturcr  and  pupil.  The  employer  gains  a  cooperation  with 
the  school,  and  assistance  in  training  a  continuous  supply 
of  young  workers  who  have  wider  experience  and  are  better 
fitted  for  their  work  than  the  ordinary  new  employes.  The 
employe,  on  the  other  hand,  achieves  actual  experience 
in  different  types  of  work,  coupled  with  careful  training, 
and  is  thus  enabled  to  make  a  real  selection  of  his  vocation. 
The  common  objection  made  before  trying  the  system  that 
the  alternation  of  workers  is  difficult  to  arrange  and  se- 
riously affects  production  has  proved  groundless  by  ex- 
perience. The  initial  hostility  of  foremen  soon  disappears. 
In  the  third  year  of  the  part-time  schools  in  New  York 
City  the  Washington  Irving  High  School  received  requests 
from  manufacturers  for  at  least  two  hundred  girls,  about 
twice  as  many  as  the  school  could  supply.8  The  Metropoli- 
tan Life  Insurance  Company  found  the  part-time  system 
a  means  of  finding  efficient  workers  for  future  permanent 
employment.  In  1915,  the  Statistical  Bureau  needed  some 
extra  clerical  workers.  Six  girls  to  fill  three  positions  for 
alternating  weeks  were  furnished  by  the  Julia  Richman 
High  School.  Pains  were  taken  to  explain  to  the  girls  the 
meaning  of  the  work  they  were  doing  while  with  the  com- 
pany in  order  that  it  might  be  of  real  educational  value  to 
them.  The  girls  gave  weekly  reports  of  their  work  in  their 
classes  at  the  school.  Three  of  the  girls  became  the  bureau's 
most  efficient  permanent  workers. 

Part-time  School  of  National  Cash  Register  Company. 
—  The  National  Cash  Register  Company  has  adopted 
the  part-time  school  more  completely  perhaps  than  any  other 
large  industry.  Apprentices  in  all  trades  are  trained  on  the 
part-time  system,  first  in  the  high  schools  and  then  in  the 
University  of  Cincinnati.  Applications  for  apprenticeship 
are  filed  in  the  student's  second  year  of  high  school.  The 
following  summer  the  boy  is  given  employment,  and  if  he 
gives  promise  is  then  indentured  for  four  years  and  sent 


EDUCATION  83 

back  to  the  high  school  for  two  years  part-time  work.  He 
is  paid  only  for  the  time  spent  in  the  factory.  A  credit  is 
given  him  in  the  school  and  in  the  factory  for  two  years' 
apprenticeship.  After  graduation,  if  the  boy  should  wish 
to  become  an  engineer  and  his  work  warrants  it,  he  may 
be  admitted  to  the  cooperative  course  at  the  University. 
He  finances  himself,  but  special  rates  are  made  for  him. 
In  1914  the  four-year  course,  excluding  board,  was  esti- 
mated as  costing  $445.  Two  weeks  are  spent  alternately 
at  the  factory  and  at  the  college,  and  the  boy  is  paid  regular 
journeyman's  wages  while  at  the  factory.  If  he  does  not 
wish  to  go  to  the  University  he  finishes  his  apprenticeship 
term  at  the  factory  and  attends  a  continuation  school  two 
half  days  a  week  for  two  years.  For  this  time  spent  in  school 
he  is  paid  in  full.9  An  adaptation  of  the  part-time  school 
is  the  cooperative  educational  scheme  in  use  in  Chicago 
and  Minneapolis,  whereby  bricklayers  and  those  in  the 
building  trades  are  given  instruction  in  the  public  schools 
in  the  theory  and  technique  of  their  trades  during  the  slack 
winter  months  of  January  and  February.10 

Technical  Night  Schools.  —  The  need  of  industrial  workers 
to  enlarge  their  technical  knowledge  in  order  to  put  them- 
selves in  line  for  promotion  has  led  to  the  wide  develop- 
ment of  the  technical  night  school,  in  spite  of  the  serious 
objection  that  unless  working  hours  are  unusually  short, 
the  work  exceptionally  light  or  the  school  work  of  a  recrea- 
tional character,  the  worker  has  not  the  physical  stamina 
to  secure  an  adequate  return  for  the  time  spent.  Public 
educational  authorities,  employers,  and  private  agencies 
have  organized  such  night  schools.  The  Murray  Hill  Eve- 
ning High  School  in  New  York  ( 'it  y  and  the  Trade  School  in 
Newton,  Mass.,  are  notable  examples  of  complete  courses 
conducted  by  public  education."  To  meet  the  criticism 
of  employes  that  the  public  night-school  courses  have  QOl 
met  the  demands  of  industry,  the  so-called  short  unit  courses 


84  THE   HUMAN   FACTOR   IN    INDUSTRY 

were  formulated,  and  although  they  have  not  as  yet  been 
widely  introduced  into  the  public  evening  classes,  they 
represent  a  new  development  worth  mentioning  here. 
The  plan  for  this  system  involves  the  formation  into  joint 
advisory  boards  of  employers  and  workmen  skilled  in  the 
trade.  The  courses  themselves  are  organized  to  serve  the 
specific  needs  of  a  particular  group,  in  a  limited  number  of 
lessons  based  on  material  found  to  be  of  practical  value.12 

Cooperation  of  Employer  and  Public  Night  School.  — 
The  cooperation  of  the  Green  Bay  (Wisconsin)  Board  of 
Industrial  Education  with  the  Oneida  Motor  Truck  Com- 
pany is  interesting.  An  evening  school  for  teaching  various 
trades  is  held  in  the  plant.  The  company  provides  the 
equipment,  heat,  light,  and  power.  Each  applicant  for 
admission  to  a  course  is  first  tried  out  in  the  department 
in  which  he  prefers  employment.  If  he  promises  success 
in  this  department  he  enters  the  evening  school.  The  edu- 
cational authorities  employ  the  foremen  of  the  company  as 
teachers.  On  the  completion  of  the  course  a  certificate 
assures  the  pupil  permanent  employment  in  the  factory. 
This  same  plan  is  being  introduced  in  other  cities  of  the 
state.13  Cooperation  of  this  kind  between  the  employer 
and  the  Board  of  Education  is  undoubtedly  helpful. 

Employes'  Night  Schools.  —  The  Casino  Technical  Night 
School  in  East  Pittsburgh  was  one  of  the  largest  night 
schools  supported  by  employers.  It  was  originally  founded 
by  the  Westinghouse  Electric  and  Manufacturing  Com- 
pany, though  the  basis  of  support  has  been  gradually  changed 
with  the  increase  in  the  number  of  pupils  and  the  opening 
of  its  doors  to  employes  of  other  companies.  Now  the  pupil 
is  charged  a  small  fee  and  eight  school  districts  assist  with 
yearly  appropriations  apportioned  to  the  number  of  pupils 
registered.  From  one  hundred  pupils  in  1904  the  num- 
ber has  increased  to  eleven  hundred  in  1917.  The  main 
course  consists  of  the  fundamental  principles  of  engineering, 


EDUCATION  85 

and  covers  a  four-year  period.14  The  Illinois  Steel  Company 
and  the  Gary  Works  of  the  United  States  Steel  Corporation 
have  also  made  a  special  point  of  evening  classes  in  technical 
subjects  pertaining  to  steel  making.  These  courses  are  free 
to  all  employes.15 

Y.  M.  C.  A.  Courses.  —  The  Y.  M.  C.  A.  has  the  most 
extensive  night  school  program  of  industrial  education  of 
any  social  organization.  In  many  cities  definite  trade 
instruction  for  apprentices  is  given,11  the  aim  being  to  co- 
operate with  the  industries  of  the  community  by  giving 
courses  which  will  cover  the  entire  industrial  field. 

Training  within  the  Industry 

Need  for  Training  for  the  Job.  —  The  great  value  de- 
rived from  preliminary  systematic  training  for  new  workers 
before  they  assume  a  regular  position  in  industry  is  fast 
being  appreciated.  President  Edward  Smith  of  the  Ameri- 
can Manufacturers  Export  Association  has  stated  that  in 
one  factory  of  8000  employes  where  such  training  had  been 
introduced  the  labor  turnover  had  been  reduced  15  per  cent. 
The  results  claimed  after  the  introduction  of  scientific  train- 
ing of  new  employes  by  two  hundred  firms  were  a  decrease 
in  labor  turnover  and  in  spoiled  work,  a  lower  accident  rate, 
a  rising  standard  of  efficiency  of  the  wage  earners,  and  in 
general  better  understanding  between  labor  and  capital. 
Moreover,  it  was  stated  that  the  training  departments  are 
self-supporting,  as  the  expense  of  the  t  raining  is  offset  by 
the  value  of  the  learner's  work,  in  fact,  in  many  cases  that 
they  yield  a  return  instead  of  a  loss.1 

Apprenticeship  Schools.  -  With  the  gradual  elimination 
of  the  skilled  worker  from  industry,  the  substitution  of  the 
machine  apprenticeship  as  the  method  of  learning  a  trade 
has  largely  disappeared.  Personal  instruction  of  a  new 
hand  by  a  foreman  or  by  an  old  employe  has  become  a 


86  THE    HUMAN    FACTOR    IN    INDUSTRY 

haphazard  process.  The  uninitiated  operative  is  commonly- 
left  to  teach  himself  how  to  fill  his  new  job.  The  conse- 
quent dearth  of  skilled  all-around  workers,  especially  in  the 
machine  trades,  has  led  to  the  introduction  of  the  corpora- 
tion-owned and  controlled  apprenticeship  school ;  but  re- 
cently even  in  the  less  skilled  occupations  preparatory 
training  for  the  job  has  been  tried  and  found  of  great  value. 
As  a  result  we  find  specific  provision  for  the  training  of 
workers  in  all  kinds  of  occupations,  ranging  from  the  most 
simple  to  the  most  complex  in  the  demands  that  they  make 
on  technical  proficiency. 

Early  Schools.  —  As  early  as  1895  the  Lake  Shore  and 
Michigan  Railway  had  its  apprenticeship  school.16  The  gen- 
eral revival  of  the  apprenticeship  contract  and  apprentice- 
ship method  is  more  recent.  Since  1909  the  West  Lynn  works 
of  the  General  Electric  Company  has  taken  boys  from  fifteen 
to  nineteen  years  of  age  who  have  completed  the  grammar 
grades  and  are  physically  sound,  and  tried  them  out  for  two 
months  in  the  shop.  If  adapted  they  are  then  indentured 
for  three  years  if  molders,  or  for  four  years  if  machinists, 
tool  makers,  or  pattern  makers,  and  taught  the  funda- 
mentals of  the  trade  in  a  special  training  room  for  from  one 
and  one  half  to  two  and  one  half  years.  Regular  wages 
are  paid  and  at  the  end  of  the  apprenticeship  term  a  cash 
bonus  is  awarded.17  The  Curtis  Publishing  Company 
has  an  apprentice  school  for  compositors,  directed  by  the 
manager  of  its  composition  division.  The  course  takes 
five  years  and  the  wage  paid  the  boys  is  increased  every 
six  months  during  apprenticeship.18  The  Packard  Motor 
Car  Company  of  Detroit,  Mich.,  requires  that  a  boy 
must  pass  a  physical  examination,  have  completed  the 
eighth  grade  and  be  at  least  sixteen  years  old  before  he  may 
enter  their  apprenticeship  school.  Further,  his  parents 
pay  a  cash  deposit  of  $25.00  and  sign  his  indenture  papers 
in  the  presence  of  a  notary  to  impress  upon  the  boy's  mind 


EDUCATION  87 

the  seriousness  of  the  contract.  A  bonus  of  $100  plus  the 
$25.00  is  paid  him  on  the  completion  of  the  two  and  a  half 
years'  course.19 

Railroad  Apprenticeship  Schools.  —  The  most  general 
development  has  been  by  the  railroads.  Many,  including 
the  New  York  Central,  the  Pennsylvania,  and  the  Southern 
Pacific,  have  introduced  apprenticeship  schools  as  necessary 
factors  in  maintaining  the  standards  of  railroad  work.  The 
Santa  Fe  Apprentice  School  of  the  Atchison,  Topeka,  and 
Santa  Fe  Railroad  was  established  in  1907  to  meet  the  in- 
creased demand  for  mechanics.  The  payment  of  a  bonus 
of  $75.00  upon  the  completion  of  the  course  and  another 
$75.00  to  graduates  in  the  service  six  months  later,  is  to 
encourage  the  apprentices  to  stay  in  the  employ  of  the 
company.  It  was  stated  in  1916  that  for  two  years,  in  spite 
of  a  greatly  increased  demand,  the  supply  of  mechanics 
from  the  apprenticeship  course  had  met  all  the  demands  of 
the  business.20 

Cooperation  of  Public  School  with  Apprenticeship  Course. 
—  The  School  of  Chicago  (Illinois)  Lakeside  Press  makes 
agreements  with  the  parents  of  grammar  school  graduates 
between  fourteen  and  sixteen  years  of  age  by  which  the  boy 
is  bound  for  a  two  years'  pre-apprenticeship  course.  During 
this  period  half  the  time  is  spent  in  the  school  and  half  in 
the  shop.  Then,  should  the  boy  prove  satisfactory,  his  serv- 
ices are  contracted  for,  for  five  additional  years.21  The  Fore 
River  Shipbuilding  Company  of  Quincy,  Mass..  has  developed 
its  apprenticeship  system  in  cooperat  ion  with  the  part-time 
school  in  Quincy.  The  boys  are  paired  off  and  spend  alter- 
nate weeks  in  school  and  in  the  shop.  To  meet  the  needs 
of  the  boys  who  cannot  afford  to  attend  this  part-time  ar- 
rangement the  company  itself  has  organized  a  school  for 
apprentices  for  two  days  a  week,  where  students  are  paid 
during  instruction.  After  a  six-months  term  of  probation. 
if  the  student  in  either  course  is  satisfactory,  a  four-year 


88  THE    HUMAN    FACTOR   IN   INDUSTRY 

apprenticeship  agreement  is  signed.  The  rate  of  pay  in- 
creases each  year,  from  nine  cents  an  hour  at  the  beginning  to 
sixteen  and  seven  eighths  cents  during  the  fourth  year  with 
a  bonus  of  $100  awarded  at  graduation.22  The  fact  that  so 
many  companies  have  introduced  and  maintained  apprentice- 
ship courses  is  proof  in  itself  that  they  have  been  a  success. 

Vestibule  Schools.  —  The  war  has,  moreover,  taught  us 
the  value  of  training  in  other  than  highly  skilled  occupa- 
tions. In  1917  the  Recording  and  Computing  Company  of 
Dayton,  Ohio,  introduced  a  "  vestibule  "  school,  a  separate 
training  department,  equipped  with  the  various  kinds  of 
machinery  in  use  in  the  plant.  In  this  department  women 
war  workers  inducted  into  the  plant  were  given  from  three  to 
ten  days'  instruction  in  methods  of  work  before  being  put 
on  the  floor.  The  women  teachers  selected  from  the  shop 
were  not  given  more  than  thirty  pupils  each.  The  new  opera- 
tive was  taught  only  one  job,  but  the  training  was  thorough. 
The  new  girl  was  paid  twenty  cents  an  hour  during  instruction. 
In  time  the  old  employes  were  also  given  this  instruction. 
As  a  result  one  set  of  thirty-one  employes  changed  its  rate 
of  production  from  eight  pieces  per  hour  in  January,  1916, 
to  fifty-five  pieces  per  hour  in  1918.  In  the  assembly 
department  2000  girls  produced  38,000  complete  fuses  per 
day  in  one  shift,  although  expert  engineers  had  estimated 
15,000  fuses  in  two  shifts  as  a  possible  output.23 

In  a  woodwork  and  paneling  factory  the  course  for  train- 
ing is  from  two  to  six  days  and  the  rate  of  pay  during  this 
time  is  twenty-five  cents  an  hour  for  both  men  and  women. 
The  standard  of  production  of  this  department  is  even  higher 
than  that  of  the  regular  shop.24  The  Packard  Motor  Car 
Company  kept  individual  records  of  each  "  learner's  "  prog- 
ress, not  only  in  the  training  department  but  in  the  shop  as 
well,  and  a  special  effort  was  made,  especially  in  the  case  of 
women,  to  try  them  out  on  different  types  of  machines  until 
the  occupation  best  suited  to  the  individual  was  found. 


EDUCATION  89 

This  company  justified  the  expenditure,  estimated  at  $52.21 
for  training  each  person  for  a  month,  on  the  grounds  of  in- 
creased efficiency  of  the  workers  and  subsequent  better 
and  greater  production.25 

Qualifications  of  Instructors.  —  It  has  proved  so  difficult 
to  secure  the  right  director  for  these  training  schools  that 
the  qualifications  for  the  job  have  been  analyzed  and  classi- 
fied as  follows  :26 

Per  Cent 

Trade  experience 25 

Technical  ability 20 

Technical  knowledge 15 

Ability  to  analyze  and  plan 15 

Leadership 15 

Personality JLO 

100 

The  Emergency  Fleet  Corporation,  to  meet  this  difficulty 
during  the  war,  gave  a  six  weeks'  course  at  the  Instructor's 
Training  Center  in  Newport  News  to  skilled  craftsmen 
selected  from  shipyards  all  over  the  country,  to  enable  these 
men  to  go  back  to  their  shipyards  equipped  to  instruct  new 
and  old  workmen  in  the  shipbuilding  trades.  The  shipyards 
paid  the  men's  wages  during  the  course  and  all  expenses.  The 
Emergency  Fleet  Corporation  followed  up  the  training  and 
paid  a  bonus  to  all  workmen  under  instruction,  provided 
they  remained  with  the  shipyards  seventy-eight  days.27 

Other  Vestibule  Schools. — Many  other  war  industries 
had  the  same  experience.  The  Curtis  Aeroplane  Corpora- 
tion of  Buffalo,  the  Nordyke  and  Marmon  Company  of 
Indianapolis,  the  Lincoln  Motor  Company  of  Detroit  and 
the  Seneca  Falls  Manufacturing  Company  were  among 
those  who  adopted  these  "vestibule"  schools  which  the 
Section  on  Industrial  Training  of  the  Council  of  National 
Defense  urged  upon  all  employers  in  war  industries.28  These 
war  lessons  can  be  applied  to  peace  activities,  as  well.  In- 
troduction of  such  training  is  possible  in  many  plants. 


90  THE    HUMAN    FACTOR    IN    INDUSTRY 

General  Training  Classes.  —  Between  the  prolonged  and 
elaborate  apprenticeship  courses  and  these  "  vestibule " 
schools,  with  their  training  of  three  to  six  days,  lie  the  ef- 
forts of  many  commercial,  publishing,  and  manufacturing 
houses  to  train  their  employes  for  a  period  of  a  few  weeks 
or  months,  preparatory  to  regular  employment.  The 
Northwestern  Knitting  Mills  of  Minneapolis  gives  a  three 
months'  course  to  cutters  before  allowing  them  to  do  pro- 
ductive work.10  Telephone  companies  commonly  give 
field  workers  a  four  weeks'  course  of  switchboard  lessons, 
lectures  on  the  theoretical  side  of  their  work,  on  safety 
procedure,  on  the  administration  of  the  business,  etc., 
and  divide  the  course  into  three  grades  with  intervening 
field  work.21  Every  new  employe  of  the  New  York  Edison 
Company  enters  a  training  class  in  which  he  not  only  learns 
the  technique  of  his  job  but  in  which  his  personality  is 
studied,  and  a  close  record  of  achievement  kept.29  The 
Dennison  Manufacturing  Company  does  likewise,  and 
during  this  time  makes  a  careful  study  of  the  new  employe's 
vocational  attitudes.  He  is  not  allowed  to  enter  a  regular 
department  until  he  is  able  to  earn  a  specified  wage.30  Such 
a  procedure  relieves  the  foreman  of  the  responsibility  of 
training,  protects  the  employe  from  the  unnecessary  strain 
which  accompanies  the  learning  of  a  new  job  without  ade- 
quate supervision,  and  assures  the  employer  of  a  productive 
worker  when  the  employe  finally  enters  a  department. 

Salesmanship  Schools.  —  In  this  connection  special  train- 
ing schools  for  salesmen  deserve  mention.  The  Burrows 
Adding  Machine  Company  has  a  school  for  salesmanship 
at  its  Boston  office.  A  six  weeks'  course  in  the  theory 
of  salesmanship,  comprising  four  hours'  class  work  in  the 
morning  and  three  hours  of  home  work  for  the  afternoon,  is 
followed  by  from  four  to  six  weeks  of  practical  field  work. 
Candidates  completing  this  training  successfully  are  eligible 
for   positions   as   salesmen   for    the   company.     Applicants 


EDUCATION  91 

are  chosen  from  among  those  who  answer  a  carefully  worded 
advertisement  describing  the  purpose  of  the  course  and  the 
type  of  person  desired.  The  answer  sent  by  the  company 
to  these  written  applications  explains  the  details  of  the  train- 
ing and  the  opportunities  offered  on  completion  of  the  course, 
with  special  emphasis  upon  the  fact  that  the  final  selection 
will  be  made  of  those  who  show  the  proper  qualifications  for 
the  work.  It  has  been  estimated  that  one  fourth  of  the  ap- 
plicants are  chosen  to  take  the  course,  and  of  these  one 
third  become  salesmen.  The  course  is  given  free  of  charge, 
but  the  expenses  of  the  students  arc  not  paid.31  The  Na- 
tional Cash  Register  Company  and  many  other  firms  have 
developed  schools  for  salesmen. 

Instruction  on  the  Floor.  —  The  Joseph  and  Fciss  Com- 
pany follows  a  different  method  in  instructing  its  garment 
workers.  A  corps  of  instructors  teaches  new  operatives 
from  two  to  ten  jobs  at  the  regular  machines.  An  hourly 
retainer  is  given  while  the  new  hand  is  under  instruction,  to 
make  up  the  regular  wage.  The  plan  of  teaching  a  number 
of  jobs  provides  an  extra  mental  stimulus  for  the  employe 
by  introducing  variety  into  the  work  and  assuring  a  re- 
serve force  for  necessary  shifts  as  well.32  The  American 
Pulley  Company  chooses  a  new  employe  on  the  grounds  of 
general  fitness  and  adaptability  and  then  places  him  under 
an  instructor's  supervision,  as  a  "  knockabout  "  worker, 
until  his  proper  niche  is  found.33  Smaller  factories  in  which 
extensive  training  schools  are  not  practicable  might  per- 
haps follow  the  plan  which  is  practiced  by  the  superin- 
tendent of  a  tissue-paper  concern.  The  instruction  of  new 
workers  is  centralized  in  two  old  employes  selected  not  only 
because  of  their  general  skill  in  the  different  kinds  of  work, 
but  for  their  patience  and  thoroughness 

Education  of  Blind  and  Crippled.  —  To  what  extent  the 
individual  employer  can  undertake  the  training  of  the 
physically    handicapped    is    not    clear.     In    most    instances 


92  THE   HUMAN   FACTOR   IN   INDUSTRY 

some  other  agency  must  in  all  probability  be  relied  on  to 
do  the  training.  Nevertheless,  the  results  of  the  Crocker- 
Wheeler  Company  of  Ampere,  New  Jersey, In  training  the 
blind  to  wind  coils  for  armatures  is  suggestive.  Since  the 
fall  of  1917,  some  three  hundred  and  fifty  blind  people  have 
been  so  trained.  The  period  of  training  is  from  three  to 
four  weeks.  When  proficient,  the  blind  workers  are  put 
in  the  regular  shops  with  the  sighted  workers,  and  they  earn 
as  much  in  eight  hours  as  the  sighted  workers  do  in  seven, 
and  their  work  is  of  a  higher  quality.  The  dilution  of  the 
regular  force  with  these  blind  workers  has  been  found  to 
have  a  steadying  effect  on  all  the  employes  because  of  the 
earnestness  and  concentration  with  which  they  work,  and 
the  school  is  maintained  only  because  it  is  an  efficiency 
producer  and  financially  profitable  to  the  Company.35  This 
example  has  been  followed  by  a  number  of  industrial  con- 
cerns throughout  the  country,  and  also  abroad,  notably 
the  Western  Electric  Company  of  New  York,  the  Consoli- 
dated Safety  Pin  Company  of  Bloomfield,  New  Jersey,  the 
Combination  Rubber  Company  of  Bloomfield,  the  New 
Toy  Company  of  Newark,  the  Westinghouse  Electric  Com- 
pany of  Pittsburgh,  the  General  Electric  Company  of 
London  and  Birmingham,  and  the  Thomson-Houston  Com- 
pany in  France.  It  is  interesting  to  note  in  this  connec- 
tion that  the  Ford  Motor  Company  found  after  a  survey  of 
their  factory  that  they  could  place  4032  crippled  men, 
2637  one-legged  men,  670  legless  men,  715  one-armed  men, 
and  10  totally  blind  ones.36 

Need  for  Training  in  the  Job.  —  The  recognition  and 
development  of  ability  in  a  working  force  is  essential  to  the 
success  of  an  industry.  It  must  rely  almost  exclusively, 
if  not  entirely,  upon  itself  to  fill  positions  of  greater  responsi- 
bility. "  Stealing  "  from  other  concerns  is  in  the  long  run 
bad  business  policy.  It  weakens  the  morale  of  a  working 
force  if  the  future  does  not  hold  promise  of  reward.     Any 


EDUCATION  93 

newcomer  must  overcome  opposition  and  learn  the  methods 
and  point  of  view  of  the  new  firm.  Promotion  from  within 
has  disadvantages  —  it  may  lead  to  slow  decay  because  new- 
ideas  are  not  brought  in,  but  for  most  positions  with  most 
concerns,  it  is  the  best  policy.  To  make  such  a  program 
possible,  training  is  essential ;  but  industry  must  also  face 
the  problem  of  making  the  worker  as  effective  as  possible 
in  the  job  that  he  is  holding.  The  old  employe  as  well  as 
the  new  is  worthy  of  serious  thought  and  consideration. 

Special  Training  Classes.  —  In  order  to  acquaint  their 
employes  with  the  special  problems  within  the  individual 
industry,  many  employers  have  formed  special  training 
classes  open  to  those  who  care  to  join.  Frequently  these 
give  the  worker  the  opportunity  to  view  the  business  as  a 
whole  and  to  realize  his  place  in  the  structure  of  the  organi- 
zation. 

Western  Electric  System  of  Special  Training.  —  The 
Western  Electric  Company  has  a  number  of  such  train- 
ing classes  in  various  departments.  In  the  engineering 
division,  courses  in  the  history  and  rules  of  the  company 
and  in  the  study  of  the  practical  uses  of  electricity  are  open 
to  high-school  and  grammar-school  graduates,  while  a  special 
class  in  intensive  training  in  the  activities  of  the  company 
is  given  for  the  graduates  of  either  colleges  or  technical 
schools.  The  manufacturing  division  offers  an  accounting 
course  of  one  year  for  clerical  work,  a  production  course  of 
forty  weeks  in  shop  commercial  work,  and  a  three  years'  course 
of  technical  training  in  tool  designing  combined  with  practi- 
cal work  in  mechanics  to  those  who  have  completed  either 
high  school  or  grammar  school.  In  the  installation  de- 
partment a  period  of  school  work  in  electrical  theory  and 
telephone  practice  is  given  after  the  usual  preliminary  train- 
ing, accompanied  by  six  months'  field  work.  Special  train- 
ing for  the  position  of  supervisor  is  given  to  the  graduate 
who  shows  marked  ability.     The  distributing  organization 


94  THE   HUMAN   FACTOR   IN   INDUSTRY 

offers  one  year  commercial  course  to  all  college  grades. 
This  combines  six  months'  study  of  the  distributing  end  of 
the  business  and  six  months  in  the  shops  installing  tele- 
phones. At  the  end  of  this  period  the  employe  is  placed  at 
the  work  for  which  he  is  best  qualified.37  These  courses 
cover  every  branch  of  the  business  and  represent  a  com- 
plete and  well  worked  out  system  of  special  training.  Simi- 
lar systems  of  practical  and  theoretical  education  have  been 
adopted  by  the  American  Locomotive  Company,  the  New 
York  Edison  Company,  and  others. 

Stenographic  Classes.  —  The  instruction  in  stenography 
given  by  the  Metropolitan  Life  Insurance  Company  is 
popular.  One  hundred  and  fifty  employes  were  studying 
stenography  in  1918  for  two  nights  a  week,  either  as  be- 
ginners or  in  speed  classes.  The  classes  are  open  to  any 
employe  with  a  knowledge  of  the  fundamentals.  Pro- 
motions are  made  from  these  classes  into  the  company 
stenographic  division. 

Special  Training  for  Selected  Salesmen.  —  An  intensive 
and  practical  course  of  six  and  one  half  weeks  in  Methods 
of  Production  is  offered  by  the  American  Steel  and  Wire 
Company  to  certain  selected  emplcyes  who  are  considered 
capable  of  progressing.  This  consists  of  mill  inspections, 
lectures,  quizzes,  and  discussions,  and  the  time  is  divided 
among  the  three  plants  at  Cleveland,  Pittsburgh,  and 
Worcester.  Only  twelve  men  are  entered  in  each  class. 
Reports  are  made  weekly  and  records  kept  to  which  the 
company  may  refer  at  any  time.  The  Company  believes 
that  the  complete  survey  that  is  given  of  the  business  devel- 
ops the  men  mentally  and  enlists  their  active  interest  in  its 
success.38 

Correspondence  Classes.  —  A  common  way  of  train- 
ing employes  who  are  scattered  over  a  wide  geographical 
area  is  by  means  of  the  correspondence  course.  Some 
of  these  have  been  remarkably  successful.     The  Metropoli- 


EDUCATION  95 

tan  Life  Insurance  Company  in  1918  enrolled  3000  field 
agents  in  its  correspondence  course  on  life  insurance.  In 
the  seven  years  since  the  course  was  started,  7500  individuals 
have  been  graduated.  Agents  arc  ad  mil  ted  to  the  course 
after  six  months  of  service.  During  the  course  of  the  twelve 
lessons,  conferences  are  held  with  the  district  superin- 
tendents. The  effect  in  increasing  the  efficiency  of  the  force 
and  reducing  turnover  is  indicated  by  the  success  of  the 
graduates.21  Other  employers  encourage  their  employes 
to  take  outside  correspondence  classes,  sometimes  paying 
the  fees  if  the  courses  are  successfully  completed. 

Special  Training  for  Foremen.  —  In  order  to  promote 
cooperation  between  the  employment  department  and  the 
foremen  in  the  Dennison  Manufacturing  Company,  a  three 
months'  training  period,  during  which  the  foremen  work  in 
the  employment  bureau  as  assistants  to  the  employment 
manager,  has  been  arranged.  The  foreman  upon  entering 
the  course  is  given  a  list  of  suggested  reading.  He  studies 
employment  methods  in  other  concerns  and  also  has  a  chance 
to  do  regular  interviewing  in  order  to  understand  the  prac- 
tical side  of  the  work.  The  education  gives  him  the  broad 
point  of  view  of  the  whole  organization  and  a  better  under- 
standing of  human  beings.39 

Training  Executives.  —  In  addition  to  plan-  such  as  these, 
some  companies  have  introduced  definite  training  for  execu- 
tive positions  either  in  a  major  or  a  minor  capacity.  The 
Packard  Advanced  Training  School  of  the  Packard  Motor 
Car  Company  prepares  men,  chosen  because  of  unusual 
ability,  for  the  minor  executive  positions  in  the  plant.  The 
first  class  graduated  17f>  men  brained  for  the  positions  of 
job  setters  and  foremen.  The  class  met  for  an  hour  a  day 
for  ten  days.  The  subjects  studied  included  the  handling 
of  men,  the  premium  system,  time  studies,  the  care  of  ma- 
chinery, safety  and  sanitation  methods,  and  routine  and 
system   work.     Results    were   so   satisfactory    that    classes 


96  THE    HUMAN   FACTOR   IN    INDUSTRY 

were  added  for  the  women  instructors  of  the  "  vestibule  " 
school  and  for  the  foremen  already  in  the  plant,  to  give  them 
the  opportunity  for  broader  educational  advantages.40 

Training  for  Minor  Executives.  —  The  W.  H.  McEl- 
wain  Company,  shoe  manufacturers  of  Manchester,  N.  H., 
has  organized  training  classes  for  minor  executive  po- 
sitions along  similar  lines.  Carefully  selected  candidates 
take  courses  lasting  one  to  three  weeks,  consisting  of 
office  and  classroom  work  and  field  work  in  factory.  Dur- 
ing the  first  two  or  three  months  after  the  completion  of 
the  course  the  manager  keeps  track  of  the  work  of  the 
graduate  and  holds  conferences  with  him.  The  company 
claims  that  graduates  are  promoted  twice  as  fast  as  those 
who  have  not  taken  the  training.41 

Flying  Squadron  of  Goodyear  Tire  and  Rubber  Company. 
—  The  Goodyear  Tire  and  Rubber  Company  instructs  the 
"  Flying  Squadron,"  a  group  of  chosen  men,  for  two  hours  a 
week  in  English,  shop  arithmetic,  mechanical  drawing, 
economics,  management,  and  rubber  manufacture,  so  that 
men  with  a  good  technical  and  general  education  will  be 
available  for  executive  positions.42 

Promotions.  —  The  promotion  systems  in  many  instances 
are  less  formal  methods  of  training  men  while  they  are 
working.  The  so-called  "  three  positions  plan  "  of  promo- 
tion, which  has  been  put  into  operation  in  several  com- 
panies by  Mr.  and  Mrs.  Frank  Gilbreth,  places  each  man  in 
the  organization  in  three  positions,  first,  the  one  last  oc- 
cupied by  the  man  ;  second,  the  present  position ;  and  third, 
the  position  for  which  the  man  will  next  be  eligible.  In 
this  way  everyone  has  three  functions  to  perform  —  (1)  to 
teach  the  man  under  him,  occupying  the  old  position,  how 
to  fill  it,  (2)  to  do  the  work  of  his  new  position,  and  (3)  to 
learn  the  work  of  the  man  in  the  position  next  above.43 
The  division  officers  in  one  large  concern  familiarize  them- 
selves with  the  work  in  the  general  office  while  their  sub- 


EDUCATION  97 

ordinates  do  their  work,  and  so  on  down  the  line.  Thus 
new  men  are  constantly  being  tried  out  and  trained  for  the 
future.24  Such  "  understudy  "  plans  are  used  by  many  rail- 
road organizations,  by  the  Fore  River  Shipbuilding  Corpo- 
ration, the  United  Cigar  Stores,  the  National  Cash  Register 
Company,  and  the  Dennison  Manufacturing  Company.30,38 
Coordinated  Education  and  Promotion.  —  The  National 
City  Bank  of  New  York  City  has  a  carefully  coordinated 
system  of  education  and  promotion.  A  young  boy,  for 
instance,  may  be  examined  and  if  satisfactory  taken  on  as  an 
office  boy  or  page,  and  placed  in  the  Page  Class  for  one  month. 
In  this  Page  Class,  which  meets  twice  a  week  during  busi- 
ness hours,  he  learns  the  geography,  rules,  and  officers  of  the 
bank,  etc.  If  he  passes  the  examination  given  at  the  end  of 
the  month  and  if  his  personality  seems  fitted  for  the  work, 
he  is  entered  as  a  regular  page  at  the  end  of  three  months' 
probation  period  and  remains  a  page  from  one  to  two  years. 
He  is  then  eligible  for  the  messengers'  department  of  the 
filing  department,  but  must  first  attend  the  Messengers' 
Filers'  Class  for  one  month  and  pass  another  examination 
before  promotion.  After  six  months  he  is  considered  for 
promotion  to  the  check  desk,  for  which  work  he  must  again 
be  trained.  While  at  the  check  desk  he  is  allowed  to  apply 
for  one  of  the  special  classes  in  stenography,  bookkeeping, 
foreign  exchange,  credits,  foreign  trade,  new  business,  in- 
dustrial service,  or  bonds,  loans,  and  investments,  and  if  the 
Educational  Committee  approves  of  his  choice  he  is  then 
trained  for  this  still  higher  work.  This  sequence  of  posi- 
tions and  classes  covers  a  period  of  nine  years  and  combines 
with  technical  information  on  the  history  and  methods  of 
banking,  courses  in  English  and  arithmetic.  When  an 
employe  is  in  the  Fourth  Year  ( Jlass  work  and  has  been  with 
the  bank  two  years,  he  may  select  and  attend  approved 
courses  in  English  and  Political  Economy  in  outside  schools, 
and  the  City   Bank  Club,   an   organization   of   the  clerical 


98  THE   HUMAN   FACTOR   IN    INDUSTRY 

force,  will  refund  all  fees  for  such  courses  upon  satisfactory 
completion.  A  few  of  those  who  enter  the  bank  from  the 
high  schools  or  colleges,  having  apparent  ability,  are  en- 
rolled in  the  Apprenticeship  Course  of  the  Bank  for  a  period 
of  from  two  to  four  years.  The  bank  retains  the  privilege 
of  terminating  the  apprenticeship  whenever  the  employe's 
work  is  unsatisfactory.  These  apprentices  are  shifted  from 
department  to  department  and  promoted  more  rapidly  than 
the  other  workers.  Several  of  the  apprentices  are  selected 
each  year  to  become  members  of  the  College  Training  Class, 
in  which  college  graduates  are  trained  for  foreign  service.44 

Plant  Charts.  —  A  plant  chart,  giving  every  position  in 
its  relation  to  every  other,  facilitates  promotions.  When 
the  new  employe  is  engaged  and  interviewed  his  position 
on  this  chart  is  indicated,  showing  the  possible  line  of  ad- 
vancement and  the  probable  length  of  time  it  will  take  him 
to  advance.  If  the  employe  wishes  he  may  tell  what  line  of 
promotion  he  would  like  to  follow.  At  intervals  thereafter 
the  manager  of  promotion  should  interview  the  employe 
and  check  up  his  progress  on  the  chart,  and  when  unsatis- 
factory, make  an  effort  to  discover  the  reason.  If  an  employe 
chooses  to  remain  in  any  one  position  permanently,  he  should 
then  teach  his  subordinate  only  enough  of  his  work  for  that 
man  to  advance  above  him. 


General  Education 

Need  for  General  Education.  —  Besides  the  special  train- 
ing which  employes  are  receiving  to  make  them  effective 
workers,  familiar  with  the  technical  problems  of  the  in- 
dustry, and  to  train  their  executive  ability,  employers  are 
seeking  to  develop  greater  efficiency  by  a  certain  amount 
of  general  education.  Americanization  classes  and  edu- 
cational campaigns  have  been  developed  to  promote  safety 
and  to  raise  the  health  level  of  the  working  force ;   cultural 


EDUCATION  99 

classes  have  been  formed  to  increase  the  general  grade  of 
intelligence;  meetings  of  executives  and  workmen  are  held 
in  order  to  induce  cooperation  by  the  discussion  of  knotty 
problems ;  and  finally  the  plant  organ  is  published  in  order 
to  increase  the  esprit  de  corps  of  the  organization  and  to 
serve  as  a  further  educational  medium. 

English  Classes.  —  Between  1900  and  1914  over  ten 
million  male  foreigners  above  fourteen  years  of  age  came 
to  the  United  States.  This  group  has  entered  American 
industry.  School  authorities  have  to  date  been  unable  to 
teach  them  English  and  have  only  in  a  small  measure  pre- 
pared them  for  citizenship.  Realizing  these  facts,  many 
employers  have  undertaken  to  teach  English  to  foreign-born 
employes.  A  knowledge  of  English  on  the  part  of  the  em- 
ployes is  of  obvious  advantage  to  employers,  as  the  follow- 
ing example  will  illustrate.  The  Ford  Motor  Company,  in 
two  years'  time  after  non-English-speaking  employes  were 
compelled  to  attend  English  classes,  attributed  a  54  per  cent 
reduction  in  accidents  to  the  fact  that  the  men  could  read  the 
safety  signs  and  understand  orders  and  instruction.45  More- 
over, the  inability  to  understand  the  language  seriously 
affects  the  efficiency  of  the  worker.  The  factory  record  of 
thirty-five  foreign  workers  with  Joseph  and  Feiss  Company 
who  could  not  speak  English  shows  that  only  one  of  the 
thirty-five  had  reached  the  efficiency  of  the  best  in  his  line 
of  work,  eight  were  below  average  in  efficiency,  and  twenty- 
six  were  the  least  efficient  in  their  respective  operations.46 

Solvay  Americanization  Plan.  —  In  planning  English 
classes,  employers  should  study  the  Deeds  and  the  facilities 
of  the  community.  The  Solvay  ( Sompany  of  Syracuse, 
half  of  whose  employes  are  Qon-English-speaking,  holds 
classes  directly  after  working  hours;  attendance  is  compul- 
sory, and  one  half  the  regular  wage  rate  is  paid.  All  un- 
excused  absences  are  investigated.  The  teachers  are 
provided   by  the   public   school   authorities.       In   order   to 


100  THE   HUMAN   FACTOR   IN   INDUSTRY 

specialize  the  instruction  an  attempt  is  made  to  acquaint 
pupils  with  the  conditions  in  industry  by  trips  through  the 
plant,  on  which  production  problems  are  explained.  The 
development  of  a  special  textbook  for  these  classes  based  on 
the  necessary  vocational  vocabulary  is  the  ultimate  aim.47 
Many  corporations  now  require  all  new  employes  to  attend 
and  graduate  from  English  classes.  In  the  Joseph  and  Feiss 
Company,  teachers  and  textbooks  are  furnished  by  the 
Board  of  Education  of  Cleveland.  The  Ford  English  School 
is  manned  by  teachers  from  among  the  employes  themselves 
who  volunteer  for  this  work.  The  course  consists  of  seventy- 
two  lessons,  taught  in  thirty-six  weeks,  for  two  hours  a  day, 
twice  a  week.  For  the  Fore  River  Shipbuilding  Company, 
the  North  American  League  provides  English  teachers,48 
while  the  Pennsylvania  Railroad  employs  its  own  instructors. 

Compulsory  Attendance  at  Classes  with  Pay,  Best  Plan. 
—  The  plan  of  paying  the  individual  for  attendance  is  prob- 
ably the  most  satisfactory  method.  The  class  is  usually 
held  directly  before  or  after  work  hours  and  the  pay  based  on 
the  regular  wage.  This  method  compels  every  non-Eng- 
lish-speaking employe  to  attend  the  classes  with  pay,  so 
that  no  one  will  escape  instruction  and  remain  an  indus- 
trial hazard  and  a  needlessly  inefficient  worker.49 

Instruction  in  Other  Subjects  Often  Combined  with  Eng- 
lish Classes.  —  D.  E.  Sicher  and  Company,  of  New  York, 
make  the  English  classes  interesting  to  the  employes  be- 
cause the  teaching  of  English  is  only  incidental  to  stere- 
opticon  lectures,  the  teaching  of  dressmaking,  drawing,  and 
arithmetic.21  The  Pennsylvania  Railroad  teaches  English 
by  means  of  stereopticon  lectures,  with  views  of  the  proper 
and  improper  ways  of  doing  work.50  The  Du  Pont  Powder 
Company  also  teaches  English  while  displaying  stereopticon 
views  of  safety  work. 

Health  and  Safety  Education.  —  There  is  close  relation- 
ship between  English  classes  and  safety  and  health  work  in 


EDUCATION  101 

many  industries.  Many  companies  combine  the  two  under 
one  person  ;  the  safety  engineer  of  the  Solvay  Company,  for 
instance,  is  director  of  the  Americanization  schools.  Ex- 
tensive programs  for  health  and  safety  education  have  been 
undertaken.  Safety  propaganda  has  taken  the  form  of 
meetings  in  company  time  or  during  noon  hour,  lectures 
often  accompanied  by  moving  pictures,  bulletins  posted  in 
conspicuous  places  and  often  illustrated  by  graphic  draw- 
ings, material  printed  in  the  plant  organ,  safety  contests 
and  safety  committees  which  work  up  new  forms  of  arous- 
ing and  maintaining  interest  in  the  importance  of  "  safety 
first."  Health  education,  usually  directed  by  the  medical 
department,  takes  much  the  same  form  as  the  safety  work. 
Lectures  on  hygiene,  meetings  illustrated  by  charts  and 
pictures,  health  pamphlets,  and  articles  in  the  company  paper 
are  among  the  main  features.  The  details  of  education  in 
safety  and  health  are  given  in  the  chapters  on  "  Working 
Conditions  "  and  "  Medical  Care." 

Cultural  Classes.  Company  Cultural  Classes.  —  Classes 
in  literature,  current  events,  general  information,  personal 
hygiene,  drawing,  sewing,  music,  domestic  science,  and  other 
subjects  not  related  to  the  day's  work  may  be  considered 
cultural  classes.  In  many  instances  these  classes  are  under 
the  auspices  of  a  recreational  club  or  association  within  the 
industry,  as  for  instance  the  Wanamaker  Women's  League, 
which  conducts  domestic  science  classes  open  to  all  members 
of  the  league,  or  the  National  Cash  Register  Club,  which 
includes  in  its  curriculum  courses  on  salesmanship,  adver- 
tising, business-letter  writing,  shop  mathematics,  public 
speaking,  mechanical  drawing,  free-hand  drawing,  book- 
keeping, and  printing.61  Where  these  classes  are  not  organ- 
ized under  an  employes'  club  the  company  often  super- 
vises them.  The  John  Wanamaker  Commercial  Institute 
offers  instruction  in  academic  and  general  commercial  work, 
music,  ethics,  and  physical  training  in  evening  sessions  for 


102  THE    HUMAN    FACTOR   IN    INDUSTRY 

boys  and  girls,  held  twice  a  week.52  The  Metropolitan 
Life  Insurance  Company  holds  sewing  and  millinery  classes 
daily  at  4.45  p.m.  just  after  closing  time,  for  an  hour.  In 
1918  forty  employes  were  registered  in  the  millinery  classes 
and  fifty  in  the  sewing  classes.  Evening  classes  in  the 
Bournville  Works,  England,  provide  instruction  in  art, 
needlework,  cookery,  and  laundry-work,  hygiene,  physiology, 
home  dressmaking,  sick  nursing,  and  care  of  infants,  English 
literature,  and  arithmetic.  In  this  concern,  moreover, 
evening  classes  in  general  academic  work  as  a  means  of 
broadening  general  education  are  compulsory  for  both  girls 
and  boys,  the  latter  choosing  between  a  general  commercial 
and  an  industrial  course.53 

Cultural  Classes  Outside  of  Industry.  —  The  many  pri- 
vate social  agencies,  such  as  the  Y.  M.  C.  A.  and  the 
Y.  W.  C.  A.,  for  example,  which  offer  evening  classes  of  this 
type  will  eventually  be  in  the  same  position  as  employers' 
activities.  To  an  increasing  extent,  public  authorities  are 
displacing  employers  and  private  agencies  in  this  field.  It 
is  rather  the  function  of  a  board  of  education  to  furnish 
classes  of  this  kind  than  of  industry.  Many  of  the  public 
high  schools  and  even  elementary  schools  as  well  provide  night 
courses.  The  regular  night  schools  are  beginning  to  offer 
full  schedules,  including  domestic  science,  manual  training, 
and  other  cultural  classes.  But  employers  can  be  of  real 
service  to  their  employes  in  this  connection  by  putting  them 
in  touch  with  the  facilities  provided  by  outside  agencies. 
The  Western  Electric  Company  does  this  through  an  In- 
formation Bureau  established  in  the  Hawthorne  Club  rooms. 
The  employes  are  given  information  and  advice  in  regard  to 
the  courses  of  study  in  the  outside  night  schools.37 

Educational  Program  and  Garment  Workers  Union.  — 
Again,  labor  union  activities  may  displace  the  employer 
in  the  field  of  cultural  education.  The  beginnings  have 
been  made  by  the  International  Garment  Workers  Union 


EDUCATION  103 

in  a  number  of  cities.  They  have  cooperated  with  boards 
of  education  and  opened  courses  in  literature,  English, 
sociology,  and  social  problems  free  to  all  the  members  of  the 
union.  Tri-weekly  classes  arc  held  in  the  public  school  and 
qualified  teachers  are  furnished  by  the  educational  authori- 
ties.54 

Continuation  Schools.  —  An  interesting  phase  of  cultural 
classes  is  the  so-called  continuation  schools,  which  aim  to 
give  children  between  the  ages  of  fourteen  and  sixteen  years, 
who  are  regularly  employed  in  industry,  an  opportunity  to 
increase  their  general  education.  In  five  States — Wisconsin, 
New  York,  Massachusetts,  Michigan,  and  Pennsylvania,  these 
children  attend  continuation  schools  for  a  minimum  time  of 
four  hours  each  week  in  the  employers'  time.  In  some 
cases  the  classes  are  held  in  rooms  provided  and  equipped 
by  the  employer ;  in  others,  the  children  go  to  classes  in  the 
public  school  buildings ;  but  in  all  cases  the  teachers  are 
employed  and  assigned  to  their  work  by  the  Board  of  Edu- 
cation. 

The  industrial  school  for  which  Germany  is  famous  is 
strictly  a  continuation  school.  It  is  used  to  continue  the 
general  education  of  the  child  who  either  is  forced  or  wishes 
to  go  into  industry  as  soon  as  legally  permitted  to  do  so  and 
before  the  elementary  education  has  been  completed.  It  is, 
therefore,  at  best  a  compromise  and  a  forecast  of  a  higher  age 
limit  within  which  full  time  school  attendance  will  be  re- 
quired. In  Boston  the  attempt  is  made,  however,  to  have 
these  schools  function  as  vocational  schools  trying  the 
pupil  out  in  various  processes  and  coordinating  the  school 
work  with  his  work  in  industry.  In  the  last  analysis  the 
time  for  training  allowed  in  the  continuation  school  is  too 
meager  to  make  possible  startling  results,  so  thai  for  those 
compelled  to  enter  industry  but  capable  of  absorbing  a  higher 
vocational  training,  the  part-time  school  will  probably 
supersede  the  continuation  school. 


104  THE    HUMAN   FACTOR   IN    INDUSTRY 

Libraries  and  Magazines.  —  Another  method  of  pro- 
viding employes  with  the  opportunity  of  widening  their 
intellectual  horizon  is  the  establishment  of  libraries  in  in- 
dustrial plants.  Occasionally  it  is  the  public  library  which 
establishes  a  branch  in  the  factory,  but  frequently  the  com- 
pany buys  its  own  books.  The  library  of  the  Metropolitan 
Life  Insurance  Company  is  a  branch  of  the  New  York  Pub- 
lic Library,  but  in  addition  has  some  2000  volumes  of  its 
own  on  general  subjects  as  well  as  an  insurance  reference 
library  of  over  20,000  volumes.  The  circulation  among 
6000  employes  is  at  the  rate  of  200  volumes  a  day.  The 
National  Cash  Register  Company  outlines  suggested  courses 
of  reading;  25  per  cent  of  the  1100  men  employed  and  42 
per  cent  of  the  200  women  are  members  of  the  library.55 
The  libraries  in  the  reading  rooms  of  the  Santa  Fe  Rail- 
road contain  18,500  volumes  and  have  a  daily  circulation 
among  8500  employes.56  Magazines  and  newspapers  are 
frequently  provided  in  the  reading  and  rest  rooms,  and  in 
clubhouses.  The  character  of  the  employes  determines  the 
kinds  of  magazines  desired.  Companies  that  employ  large 
numbers  of  foreign-born  workers  frequently  have  newspapers 
in  foreign  languages  to  meet  the  demands  of  this  group. 
The  American  Rolling  Mill  at  Middletown,  Ohio,  especially, 
makes  a  point  of  doing  this  in  its  reading  room  for  foreign 
workmen.57 

Personnel  Meetings.  —  Besides  educating  the  individual 
employe,  the  employer  has  come  to  realize  the  truth  of  the 
old  saying  that  two  heads  are  better  than  one  and  that 
valuable  educational  results  come  from  meetings  held  be- 
tween workmen  or  executives  for  the  discussion  of  common 
problems.  The  Tuesday  morning  meetings  of  the  executives 
in  the  different  departments  of  the  Burroughs  Adding  Ma- 
chine Company  resulted  in  the  installment  of  an  entirely 
new  system  in  the  advance  mailing  department  of  the  con- 
cern.58     The   Goodyear  Tire   and   Rubber  Company   has 


EDUCATION  105 

successful  tri-weekly  meetings  of  foremen  during  the  last 
hour  of  the  day.  These  meetings  are  for  the  discussion  of 
topics  of  special  interest  to  foremen,  to  the  safety  and  to  the 
personnel  departments.  The  head  of  the  employment  de- 
partment attends  all  meetings.  To  add  new  interests  speakers 
are  occasionally  introduced  to  talk  on  general  subjects. 

The  Employes'  Engineering  Club  of  the  Greenfield  Tap 
and  Die  Corporation  represents  another  method  of  edu- 
cating the  employes  by  group  discussion.  The  full  details 
of  the  organization  of  this  club  are  given  under  the  section  on 
educational  clubs  in  the  chapter  on  "  Recreation."  The 
educational  benefit  alone  derived  from  employes'  meetings, 
in  whatever  form  they  are  organized,  would  seem  to  justify 
their  development. 

Plant  Organ.  —  There  is  an  increasing  number  of  plants 
and  corporations  that  are  publishing  magazines  and  news- 
papers. The  "  house  organ,"  concerned  with  sales  methods 
need  not  be  discussed  here.  The  "  plant  organ,"  whose 
object  is  to  "  sell "  the  plant  to  the  workers,  is  of  interest  in 
this  connection.59  Its  aim  is  to  convey  to  the  mass  of  workers 
from  president  down  to  water  carrier  the  spirit  of  the  or- 
ganization.60 It  is  used  to  emphasize  to  the  employes  the 
importance  of  their  individual  effort,  besides  imbuing  them 
with  the  spirit  of  cooperation.  The  plant  organ  also  serves 
as  an  educational  medium.  It  print-  necessary  informa- 
tion on  technical  subjects  of  special  interesi  to  the  reader, 
and  safety  and  health  propaganda.  An  editorial  state- 
ment in  one  of  these  papers  expresses  the  purpose  of  the 
plant  organ  to  be  the  promotion  of  cooperation  between 
employer  and  employe,  and  the  strengthening  of  the  loyalty 
of  the  employes  to  the  company  and  to  each  other.61 

Typical  Issue  of  Plant  Organ.  —  An  analysis  of  a  good 
shop  paper,  the  Western  Electric  News,  published  by  the 
Western  Electric  Company,  will  perhaps  indicate  the  usual 
contents  and  approach.     The  material  of  a  typical  number 


106  THE   HUMAN   FACTOR   IN    INDUSTRY 

may  be  divided  in  general  into  two  groups  —  articles  of 
general  educational  interest  and  news  distinctly  relating 
to  plant  activities.  In  the  first  group  belong  an  article  on 
the  economic  situation  after  the  war  by  the  president  of  the 
company;  one  on  the  newest  safety  devices  introduced  into 
the  Hawthorne  works,  illustrated  by  cuts  of  machines  in 
operation ;  and  an  account  of  a  trip  by  the  head  of  a  depart- 
ment through  South  America,  enlivened  by  snapshots  of 
interesting  places.  The  rest  of  the  material  throughout 
the  paper,  with  the  exception  of  general  suggestions  for  self- 
improvement  and  jokes  and  cartoons,  belongs  in  the  second 
group.  A  detailed  description  of  the  annual  field  day,  ac- 
companied by  photographs  and  cartoons  of  competitors, 
reports  of  club  activities  and  other  social  affairs  not  only  in 
the  Hawthorne  plant  but  in  branch  offices,  form  the  major 
part  of  the  news.  The  write-up  of  the  Annual  Products  Show 
at  the  Hawthorne  works  is  accompanied  by  pictures  of  the 
most  important  exhibits.  This  idea  of  frequent  illustrations 
either  by  photographs  or  drawings  is  distinctly  helpful  in 
securing  and  maintaining  the  interest  of  the  reader. 

Personals  are  scattered  all  through  the  organ.  There  is 
a  separate  column  for  marriages,  several  pages  devoted  to 
the  publication  of  awards  for  service;  the  photographs  of 
the  employes  qualifying  for  the  twenty  or  more  years  of 
service  appear,  combined  with  a  short  history  of  their  work 
in  the  company. 

The  magazine  is  full  of  good  and  clean  humor.  A  special 
page  headed  "  Editor  Egge's  Own  Page  "  is  devoted  to  jokes 
and  humorous  stories,  replete  with  local  color.  The  car- 
toons are  especially  amusing,  —  the  drawings  of  competitors 
in  the  events  of  the  field  day  representing  a  high  type  of 
comic  art.  There  is  usually,  though  not  in  the  case  of  the 
issue  under  discussion,  a  funny  story  in  the  style  of  Wallace 
Irwin  or  "  Mr.  Dooley,"  based  on  Western  Electric  prob- 
lems and  current  plant  news. 


EDUCATION  107 

But  the  style  and  handling  of  material  in  this  paper  are 
especially  suggestive.  There  is  no  preaching  or  moralizing. 
The  problems  are  discussed  in  a  straightforward,  pointed,  and 
humorous  manner.  "  Have  you  a  Hateful  Habit  in  your 
Home?  "  is  the  heading  for  a  page  filled  with  a  discussion  of 
business  habits.  One  of  these  which  reads,  "  When  your 
telephone  rings,  always  answer  '  Hello.'  There  are  only 
about  13,000  other  people  at  Hawthorne  with  the  same 
name,  so  the  person  calling  knows  at  once  that  he  has  the 
proper  individual,"  gives  the  manner  of  handling  helpful 
suggestions.  The  spirit  in  this  plant  organ  is  good.  The 
paper  is  free  from  any  paternal  tone,  and  there  is  an  ab- 
sence of  "  playing  up  "  or  eulogizing  the  heads  of  the  con- 
cern. One  feels  that  the  organ  is  edited  directly  for  its 
readers  with  their  cooperation  and  not  at  them. 

Special  Points  Worth  Mentioning.  —  Articles  which  en- 
able the  worker  to  understand  the  work  of  different  depart- 
ments and  the  coordination  of  his  department  with  the  unit 
as  a  whole  have  a  definite  place,  —  a  series  of  articles  in  "  The 
Home  Office  "  of  the  Metropolitan  Life  Insurance  Company 
may  be  mentioned  in  this  connection.  The  first  was  on 
mail  handling,  describing  in  detail  the  mail  delivery  within 
the  building,  followed  by  others  on  different  departments. 
Organization  charts  of  departments  are  frequently  used. 
Histories  of  the  company  and  of  various  processes  are  help- 
ful and  of  particular  value  on  anniversaries  or  special 
occasions.  Aids  in  education  are  published  in  the  Mirror, 
plant  organ  of  the  Charles  William  stores.  This  reviews 
a  series  of  business  books  selected  as  bearing  directly  on 
the  problems  of  the  concern,  and  also  publishes  articles  on 
Americanization  of  interest  to  those  Learning  to  master  the 
English  language.83 

Educational  Material.  —  The  plant  organ  is  an  ideal 
medium  for  the  education  of  employes  in  matters  of  health 
and  in  safety.     In  the  latter  connection,   the  publication 


108  THE    HUMAN   FACTOR   IN    INDUSTRY 

of  actual  photographs  and  cartoons  is  especially  valuable 
should  there  be  a  foreign  or  illiterate  group.60  The  reprint 
of  an  article  on  venereal  diseases  by  the  War  Department 
Commission  on  Training  Camp  Activities  in  one  paper  was 
excellent.59  The  General  Chemical  Bulletin  of  the  General 
Chemical  Company  conducts  a  special  Health  and  Hygiene 
Department  which  includes  any  topic  on  this  subject,  from 
the  way  of  detecting  tuberculosis  to  the  hints  for  a  properly 
balanced  diet.  Health  is  an  important  topic,  and  material 
which  makes  it  vital  has  its  place  in  a  shop  paper. 

Advertising  Columns.  —  The  paper  must  be  interesting, 
but  it  can  also  be  helpful  to  employes.  The  Goodyear 
Tire  and  Rubber  Company  started  a  "  getting  acquainted  " 
campaign.63  Lost  and  Found  and  For  Sale  columns  appear 
in  a  number  of  shop  organs.  The  Republic  Motor  Truck 
Company  has  worked  this  out  well.  At  the  head  of  their 
"  want  ad  "  column  is  printed,  "  There  will  be  no  charge  for 
these,  but  on  account  of  limited  space  we  will  publish  them 
two  times  only,  unless  notified  to  continue."  64 

Inspirational  Material.  —  The  "  inspirational  "  material 
appearing  in  plant  papers  is  of  two  kinds  —  (a)  that  which 
urges  employes  to  forge  ahead  by  stirring  their  ambitions, 
and  (6)  that  which  praises  the  "  good  old  faithful  employe." 
An  example  of  the  former  is  a  cartoon  of  a  man  carving  him- 
self out  of  a  block  of  marble,  printed  in  one  plant  paper 
and  immediately  copied  in  many  others.  The  latter  is  il- 
lustrated by  the  shop  paper  of  the  Greenfield  Tap  and  Die 
Company,  which  prints  in  each  issue  a  biography  of  one 
worker  who  has  been  in  the  employ  of  the  concern  for  a 
long  time.  The  column  is  headed,  "  These  men  are  our  old 
guard.     They  are  the  backbone  of  industry."  65 

Reporters  in  Plant  Collect  Plant  News. — Real  plant  news, 
including  items  on  special  activities,  the  various  services 
provided  for  the  employes,  and  tactful  personals  are  im- 
portant ingredients  of  a  plant  paper  if  they  can  be  made 


EDUCATION  109 

interesting  to  a  sufficiently  large  number  of  employes.  The 
plan  of  making  different  workers  reporters  in  the  various 
departments  of  the  concern  is  one  of  the  ways  of  getting 
hold  of  real  plant  news.  In  the  Western  Clock  Company 
a  foreman  of  each  department  appoints  a  worker  to  gather 
news  for  three  months.  At  the  end  of  that  time  he  is  thanked 
officially  by  the  editor.66 

Form  and  Cost.  —  There  is  a  great  variety  in  the  form  and 
size  of  plant  organs.  Some  papers  are  full  blanket  sheets, 
others  are  of  a  size  to  be  put  into  a  coat  pocket.  The  con- 
venient size  is  that  of  five  by  eight  inches.  Good  printing 
is  an  invaluable  asset.  Calendered  paper  should  be  used. 
Make-up  should  be  carefully  considered.  Different  sizes 
of  type  can  be  used  for  special  headings,  thus  adding  to  the 
attractiveness  of  the  periodical.  The  cost  of  printing  one  plant 
paper  about  seven  by  ten  inches  in  size,  published  monthly 
for  about  1500  employes  and  containing  a  number  of  cuts 
and  half  tones,  was  given  in  March,  1919,  as  averaging  about 
$1000  a  year.61  One  company  publishes  a  magazine  with  a 
circulation  of  30,000  copies  a  month  at  a  cost  of  about  eight 
cents  per  copy.  Another  concern  issues  30,000  copies  monthly, 
and  finds  that  the  annual  costs  are  divided  as  follows : 

Printing $16580.63 

Distribution 4123.11 

Salaries 6645.00 

Cover  color  plates 1870.62 

Sketches 963.45 

Photographs 845.63 

Cuts 1785.90 

Rent  and  house  service 883.25 

Miscellaneous 1560.50 

Total $35258.09 

This  company  also  finds  that  accurate  cost  recording  on  its 
paper  helps  to  keep  down  expenses  and  results  in  greatest 
efficiency.64 


110  THE   HUMAN   FACTOR   IN   INDUSTRY 

Frequency  of  Publication  and  Distribution.  —  Most  plant 
organs  are  monthly  publications,  as  editors  seem  to  find 
it  hard  to  get  out  weekly  issues.60  Moreover,  it  may  be 
questionable  whether  with  more  frequent  issues  the  effect- 
iveness may  not  be  decreased.  Special  editions  on  subjects 
of  importance  are  of  value  to  maintain  interest.  The  B.  F. 
Goodrich  Company  published  a  special  fire  prevention  is- 
sue.64 Distribution  should  receive  careful  consideration. 
In  many  instances  the  paper  is  given  out  in  the  various  de- 
partments of  the  plant.  Sometimes  it  is  circulated  at  the 
gates.  In  other  cases  notices  are  posted  stating  that  a  new 
edition  is  ready  and  may  be  had  on  request.  It  is  impor- 
tant that  the  distribution  should  be  at  the  end  of  the  day, 
so  that  the  publication  will  be  taken  home  and  that  time 
will  not  be  lost  in  the  reading  and  discussing  of  it  during 
working  hours.61 

Editors'  Qualifications.  —  It  is  impossible  to  lay  down 
hard  and  fast  rules  for  plant  organs.  Each  concern  has  its 
own  particular  problems  and  type  of  news.  The  editor 
is  always  the  important  factor  in  a  plant  periodical.  A 
good  editor  is  one  who  understands  the  business,  knows 
news  values  and  the  newspaper  game,  is  a  keen  student  of 
human  nature,  and  has  full  authority  in  his  own  field.  "  Plant 
Organs  are  too  often  edited  for  the  executives  or  at  the  em- 
ployes. They  give  the  impression  of  exploiting  the  workers 
for  the  benefit  of  the  employers."  59  There  must  be  co- 
operation between  the  editor  and  the  readers,  so  that  the 
magazine  may  meet  all  the  needs  of  the  workers.  The 
plant  organ  should  not  publish  material  designed  to  stimu- 
late the  sales  force.  This  is  not  its  function  and  rightfully 
belongs  in  a  separate  paper.  If  the  shop  paper  is  to  be  read 
and  read  widely  it  must  contain  only  news  of  interest  to  the 
readers.  The  ideal  paper,  too,  is  democratic  in  its  approach 
and  not  paternalistic. 


CHAPTER   V 

WORKING   HOURS 

Recent  Change  in  Attitude  toward  Length  of  Working  Day. 
—  The  employer  of  fifty  years  ago  believed  that  industrial 
output  varied  in  direct  ratio  to  the  length  of  the  working  day. 
Each  hour  that  his  factory  was  working  meant  increased 
output.  Each  hour  that  saw  his  factory  or  shop  empty,  or  his 
employes  idle,  meant  to  him  lost  production  without  any 
compensating  reduction  in  overhead  charges.  Manufacturers 
scoffed  at  Ira  Stewart  when  he  agitated  the  eight-hour 
working  day  during  and  after  the  Civil  War.  In  the  three 
years  following  1915,  however,  one  million  and  a  half  workers 
in  over  4000  establishments  have  been  put  on  the  eight-hour 
day,1  nearly  three  times  the  total  number  so  employed  in 
1909.2  Of  this  number  935,000  gained  the  eight-hour  day 
during  1917  and  the  first  six  months  of  1918,  and  the 
number  is  growing  daily.  Moreover,  the  half-holiday  on 
Saturday  is  becoming  general,  the  44-hour  week  is  the 
standard  in  the  clothing  industry,  while  some  firms  have 
advanced  to  a  five-day  week  and  an  eight-hour  day  through- 
out the  year,  a  schedule  which  is  also  common  to  depart- 
ment stores  in  a  number  of  cities  during  the  summer  months. 
Chief  witness  to  the  change  in  attitude  toward  the  desirable 
length  of  the  working  period,  which  has  taken  place  in  the 
last  few  years,  is  that  part  of  the  Treaty  of  Peace  proposed 
by  the  Allies  in  1919,  in  which  the  eight-hour  day  and  forty- 
eight-hour  week,  with  one  complete  day's  rest,  is  accepted 
as  the  international  standard  for  all  industrially  developed 
countries. 

Ill 


112  THE    HUMAN    FACTOR    IN    INDUSTRY 

Reasons  for  Change  in  Attitude.  —  The  recent  impetus 
given  the  shorter  hours  movement  in  industry  is  due  to 
accumulated  force  from  three  sources  —  organized  labor, 
legislation,  and  a  reversal  in  the  attitude  of  employers  toward 
the  relation  between  hours  and  output.  The  threatened 
strike  of  the  railroad  brotherhoods  in  the  United  States  in 
1916,  for  instance,  did  much  to  popularize  the  eight-hour  day, 
at  least  as  the  basis  of  compensation.  Legislation  lags 
somewhat  behind  organized  labor  in  the  regulation  of  hours. 
Nevertheless,  forty-seven  States  in  the  Union  have  some  sort 
of  legislation  limiting  the  hours  of  labor;3  Federal  employes 
work  seven  hours  ;  the  government  war  contracts  stipulated 
the  eight-hour  day,  and  the  National  War  Labor  Board 
accepted  the  same  working  day  as  the  basis  of  compensation 
in  making  its  awards  in  disputes  during  the  war.  But  we 
still  find  various  lengths  of  working  periods  in  use,  differing 
with  the  industry  and  the  locality.  Some  employes  work 
84  hours  a  week  and  others  only  40,  less  than  half  as 
long.  Realization  by  industry  that  a  long  working  day 
does  not  mean  maximum  output,  in  fact  that  the  reverse 
may  be  the  case,  has  been  in  the  past  and  will  continue  a 
potent  factor  in  the  reduction  of  hours.  In  the  last  analysis 
the  development  of  the  movement  for  the  shorter  working 
day  will  depend  on  the  scientific  data  obtained  regarding  the 
relation  between  working  hours,  fatigue,  and  output. 

Fatigue 

Fatigue  vs.  Efficiency.  —  Fatigue  means  a  "  diminished 
capacity  for  work,  which  is  the  result  of  previous  work."  4 
When  body  or  brain  is  at  work  certain  vital  elements  are  con- 
sumed from  the  cellular  tissue  and  what  remains  is  waste 
product.  If  this  waste  product  accumulates  too  rapidly 
to  be  burned  up  by  the  oxygen  carried  in  the  blood  or  other- 
wise eliminated,  the  system  becomes  clogged  and  poisoned. 


WORKING   HOURS  113 

Rest  is  necessary  to  make  the  body  again  effective.  If  the 
strain  has  been  too  great  or  if  the  rest  is  insufficient,  some 
of  the  poison  remains  in  the  body.  The  effects  arc  then 
cumulative  and  the  individual  Buffers  permanent  and  pro- 
gressive physical  deterioration.  Thus  fatigue  affects  work- 
ing efficiency  at  first,  and  later  health  itself.* 

Causes  of  Fatigue.  —  Effort  of  any  kind  results  in  the  de- 
velopment of  the  poisons  of  fatigue.  Machine  production, 
however,  presents  a  series  of  special  factors  contributing  to 
fatigue.  Although  the  length  and  intensify  of  activity  are 
always  the  predominating  factors,  fatigue  may  be  hastened 
or  retarded  by  the  conditions  surrounding  the  activity  and 
by  the  nature  of  the  work  and  t he  type  of  worker.  "The 
problems  of  industrial  fatigue  are  primarily  and  almosi 
wholly  problems  of  fatigue  in  the  nervous  system  and  of  its 
direct  and  indirect  effects."5  It  is  for  this  reason  that  tin- 
physical  effort  demanded  of  the  worker  is  often  of  less  im- 
portance than  the  speed,  monotony,  or  fixity  of  posture  in- 
volved in  the  performance  of  his  task.  Prolonged  hours, 
work  done  at  unusual  times,  such  as  overtime,  oight,  or 
Sunday  work,  frequently  produce  an  amount  of  fatigue 
entirely  disproportionate  to  the  effort  expended  or  ihe 
quantity  of  output  produced.  Conditions  of  work  which  in- 
clude pooi-  lighting  or  ventilation,  noise  or  floor  vibrations, 
overcrowding  or  unsanitary  condition-,  hasten  fatigue  and 
may  cause  it  even  where  hours  are  Bhort  and  work  lighl  and 
varied.  These  contributing  factors  must  not  be  overlooked 
in  analyzing  the  causes  of  fatigue  in  modern  industry. 

Causes  Inherent  in  Machine  Production.  Some  of  these 
factors  which  cause  the  poisonous  fatigue  toxins  to  accu- 
mulate more  rapidly  than  they  can  l>e  thrown  olT  are 
inseparable    from    machine    production.     Speed    and    the 

♦Tin-  i  \i  tenoe  of  fatigue  p<  the  hypothesis  upon 

which  recent  scientific  investigations  of  i  their 

existence  is  not  yet  proved. 

i 


114  THE   HUMAN   FACTOR   IN   INDUSTRY 

monotonous  repetition  of  the  same  operation  cannot  be 
easily  eliminated  in  the  making  of  hinges,  for  instance,  where 
a  woman  takes  a  half  formed  hinge  and  places  it  in  the  bend- 
ing machine  50  times  a  minute  or  30,000  times  in  a  ten- 
hour  day ;  or  in  cutting  out  the  tops  of  tin  cans,  when  the 
lever  of  a  foot  press  is  worked  40  times  a  minute ;  or  in  a 
garment  factory  where  one  girl  has  to  watch  12  jumping 
needles  of  a  power  machine  at  one  time.6  The  monotony 
of  such  operations  is  typical  of  countless  machine  processes. 
Even  where  the  process  is  not  complicated  enough  to  involve 
strained  attention,  if  the  speed  is  regulated  by  the  machine, 
or  if  the  system  of  wages  spurs  to  a  dangerous  speeding-up, 
extreme  lassitude  and  loss  of  effort-power  in  the  worker  are 
usually  the  result.  The  fatiguing  effect  of  such  forms  of 
work  can  be  corrected  in  part  by  transferring  the  workers  from 
one  operation  to  another,  eliminating  waste  motion,  sub- 
stituting electrical  control  for  hand  or  foot  pressure,  carefully 
selecting  the  best  adapted  worker,  changing  piece  wages  to 
time  wages,  providing  adjustable  seats  and  foot  rests  and 
all  sanitary  conveniences,  and  installing  the  best  lighting, 
heating  and  ventilating  systems.  With  monotonous  work 
it  is  the  length  of  the  working  hours  and  the  frequency  of  the 
rest  period  which  count  in  the  reduction  of  undue  fatigue. 

Measures  of  Fatigue 

Various  Fatigue  Tests.  —  There  are  various  ways  of  test- 
ing the  relation  between  fatigue  and  productivity  and  be- 
tween working  hours  and  fatigue.  Records  of  output,  the 
amount  of  machine  power  used,  spoiled  work,  accidents, 
lost  time,  sickness  and  laboratory  tests  have  all  been  utilized. 

Amount  of  Output.  —  The  daily  amount  of  output  for  com- 
paratiyely  long  periods  gives  the  clearest  picture  of  the  effect 
of  any  change  in  the  length  of  the  working  period  on  the 
efficiency  of  the  workers.     In  making  comparisons,  however, 


WORKING   HOURS  115 

variations  in  the  supply  of  power  or  raw  materials,  labor 
turnover,  the  amount  of  time  wasted  involuntarily,  and 
changes  in  work  incentives  and  in  methods  of  management 
must  all  be  considered. 

Accident  Schedule.  —  The  schedule  of  accidents  also  gives 
a  surprisingly  accurate  measurement  of  the  progress  of 
fatigue.  The  Federation  of  Master  Cotton  Spinners' 
Associations  reported  that  out  of  1362  accidents  occurring  in 
that  industry,  only  75  were  not  caused  by  fatigue.7  Similar 
conclusions  have  been  reached  by  the  various  state  com- 
missions that  have  studied  industrial  accidents  in  this 
country.  If  the  number  of  accidents  due  to  causes  other 
than  the  physical  condition  of  the  workers  be  assumed  to  be  a 
constant,  then  the  hourly,  daily  and  seasonal  variations  in 
accidents  may  be  attributed  to  the  decrease  in  the  workers' 
attentive  powers,  or  in  his  sensitivity  and  speed  of  reaction. 
The  greatest  difficulty  in  using  accidents  as  a  measure  of 
fatigue  will  be  the  changing  speed  of  production.  The 
greater  the  output  the  more  frequently  does  the  operator 
encounter  danger  in  the  manipulation  of  the  machinery. 

Spoiled  Work.  —  Spoiled  work,  like  accidents,  results 
from  weakened  muscular  control,  inattention,  bad  judg- 
ment and  memory,  and  is  therefore  usually  traceable  directly 
to  fatigue.  This  method  of  measuring  fatigue  lias  unfor- 
tunately been  ignored  in  the  recent  scientific  studies  of 
industrial  fatigue. 

Sickness  and  Lost-Time  Records.  —  Sickness  and  lost- 
time  records  arc  next  in  value  in  measuring  fatigue.  The 
proportion  of  lost  time  due  to  sickness  and  extreme  fatigue 
is  frequently  underestimated  ami  that  due  to  mere  slack- 
ness overestimated.  This  is  true  even  where  doctors' 
absence  excuses  are  accepted,  because  the  worker  is  often 
"too  tired"  to  go  to  work  and  not  sick  enough  to  see  a 
doctor.  The  very  "slackness"  of  which  employers  com- 
plain has  probably  served  as  a  health  safeguard,  which  has 


116  THE   HUMAN   FACTOR   IN   INDUSTRY 

prevented  actual  sickness  and  has  been  made  necessary  to 
the  employe  because  of  long  hours.  The  British  Association 
for  the  Advancement  of  Science,  in  their  investigation  of 
industrial  fatigue,  found  sufficient  evidence  of  a  close  relation 
between  the  curves  of  lost  time  and  of  sickness  to  justify 
their  reliance  on  both  in  tracing  the  progress  of  fatigue. 

Laboratory  Tests.  —  Laboratory  tests  of  industrial  fatigue, 
showing  the  worker's  relative  acuity  of  hearing  and  vision 
at  the  beginning  and  end  of  the  work  period  have  been 
applied  most  successfully  by  Professor  Kent,  working  for 
the  British  Home  Office.  These  are  still  experimental,  but 
as  time  goes  on  refined  physiological  and  psychological  tests 
will  probably  be  called  into  general  use  to  determine  the 
desirable  length  of  work  and  rest  periods  for  various  types 
of  work.  Their  application  involves  certain  difficulties, 
however.  The  tested  worker  will  always  be  curious  as  to 
the  results  of  the  experiment,  and  therefore  the  laboratory 
experiment  will  not  reproduce  the  normal  state  of  mind 
during  work  or  normal  working  conditions.  For  the  present, 
the  output,  accident  and  lost-time  rates  give  us  reasonably 
accurate  pictures  of  fatigue  and  its  cost  and  its  relation  to 
the  work  period. 

Economy  of  the  Shorter  Working  Day 

Early  Recognition  of  this  Economy.  —  Wherever  careful 
records  have  been  kept,  shorter  hours  have  demonstrated 
their  value  in  increased  efficiency.  In  1816,  Robert  Owen 
testified  to  a  Parliamentary  Committee  investigating  the 
"State  of  the  Children  Employed  in  the  Manufactories 
of  the  United  Kingdom,"  that  since  reducing  the  hours 
from  llf  to  10f  a  day,  he  had  lost  not  more  than  one 
farthing  in  twenty  pence  in  the  first  three  months,  and  that 
he  was  confident  that  before  the  year  was  over  this  slight 
discrepancy   would   be  overcome.     The   change   had   been 


WORKING   HOURS  117 

made  without  any  alteration  or  speeding  up  of  the  machinery, 
and  the  increased  output  per  operative  per  hour  came  solely  — 

from  saving  breakage,  from  the  superior  attention  of  the  people 
to  all  their  operations,  from  not  losing  a  moment  when  the  work 
commences  or  when  it  ceases,  and  from  the  individuals  in  the  pre- 
vious process  paying  much  more  attention  to  the  preparatory  stages 
of  the  manufacture. 

And  these  improvements  resulted  in  turn  from  — 

the  increased  strength  and  activity  and  improved  spirits  of  the 
individuals,  in  consequence  of  being  employed  a  shorter  time  in  the 
day.8 

With  the  modern  specialization  of  labor  and  the  increased 
use  of  machinery,  fatigue  would  seem  to  have  comparatively 
small  effect  on  output.  The  motions  required  of  the  worker 
are  so  mechanical  and  involve  so  little  effort  that  in  some 
work  an  operator  performs  his  function  adequately  when 
apparently  half  asleep.  But  the  following  quotation  from  a 
report  of  the  British  Health  of  Munitions  Workers  Com- 
mittee indicates  the  danger  of  such  a  conclusion : 

Cursory  observation  of  the  youths  boring  top  caps  would  suggest 
that  by  no  possibility  could  they  increase  their  hourly  output,  how- 
ever short  their  hours  of  work,  but  the  data  adduced  show  that 
this  view  is  erroneous,  and  that  a  more  persistent  and  continuous 
application  to  their  machines  could  effect  an  improvement  of 
29  per  cent  or  more.9 

Modern  Evidence  of  this  Economy.  —  Modern  evidence 
of  the  superior  productivity  of  the  nine-hour  over  the  ten- 
hour  day  and  the  eight-hour  over  the  nine-hour  day,  is  fast 
accumulating.  All  such  evidence,  however,  varies  with  the 
industry,  the  process  and  the  individual  workers  concerned. 

Output. — The  experiment  in  reducing  hours  in  the  Zeiss 
optical  goods  factory  in  Jena,  Germany,  is  well  known. 
In  1899  hours  were  reduced  from  nine  to  eight,  while  the  out- 
put per  hour  increased   16  per  cent,  and  the  total  output, 


118  THE    HUMAN   FACTOR    IN    INDUSTRY 

3  per  cent,  an  equivalent  of  ten  days'  extra  work  during  the 
year  for  each  man.10 

In  December,  1916,  Fayette  R.  Plumb,  Inc.,  reduced 
their  working  week  from  57§  to  52|  hours,  and  at  the  same 
time  raised  their  wage  rates.  The  weekly  production  in 
one  of  the  worst  departments  increased  18.4  per  cent  and  in 
the  entire  plant,  10.0  per  cent.11  A  shoe  company,  having 
over  4000  employes,  95  per  cent  of  whom  were  paid  a  stand- 
ardized piecework  wage,  without  making  any  changes  in 
methods  of  production,  in  management,  or  in  machinery, 
obtained  the  following  results  by  reducing  their  hours  from 
55  a  week  to  52 : 12 

Productivity  Unit  per  Day 
per  Employe  Based  on 
Pairs  Shipped 

October  and  November,  1916 

(Working  55  hours) 8.91 

December,  1916,  and  January,  1917 

(Working  52  hours) 9.00 

February  and  March,  1917 

(Working  52  hours) 9.02 

The  Cleveland  Hardware  Company  in  1915,  instead  of 
adding  overtime  during  the  busy  season,  continued  their 
usual  nine-hour  schedule  and,  to  the  surprise  of  men  and 
foreman,  that  year  was  the  largest  productive  one  in  their 
history.  In  the  next  busy  season,  instead  of  working 
overtime,  hours  were  reduced  to  eight,  and  still  production 
increased.  In  the  winter  of  1916-1917,  work  accumulated 
during  the  installation  of  new  machinery  and  the  men  vol- 
unteered to  clear  it  up  by  working  temporarily  in  two 
shifts  of  six  hours  each.  Each  team  turned  out  almost  as 
much  as  they  had  before  in  eight  hours.  The  men  later 
asked  to  return  to  the  eight-hour  schedule,  fearing  that  the 
slight  decrease  in  productivity  and  in  their  piecework  wages 
would  not  be  overcome.2  We  cannot  know  whether  the  good 
effects  of  the  six-hour  day  would  have  finally  resulted  in 


WORKING    HOURS 


119 


equal  or  improved  productivity,  but  the  experiment  certainty 
indicated  that  somewhat  less  than  eight  hours  was  the  maxi- 
mum productive  working  day  for  the  kind  of  work  involved. 

Other  interesting  evidence  of  the  advantages  of  shortened 
working  hours  comes  from  the  Solvay  Process  Company  of 
Syracuse.  In  1892  they  installed  three  eight-hour  shifts  in 
place  of  two  previous  shifts  of  eleven  and  thirteen  hours. 
In  1909  the  president  of  the  company  said  that  the  initial 
increased  cost  per  unit  of  production  was  more  than  over- 
come within  a  year's  time.13  Mention  has  been  made  of  the 
successful  experiment  of  Joseph  and  Feiss  Company  in 
establishing  a  40-hour  week.  The  Ford  Motor  Company  and 
the  Commonwealth  Steel  Company  also  afford  examples  of 
the  economic  value  of  the  shortened  working  day. 

The  National  Industrial  Conference  Board  concluded  a 
study  of  413  metal  manufacturing  establishments  which 
had  reduced  hours  between  1917  and  1919  with  the  state- 
ment that 14  — 

(1)  A  50-hour  week  has  proved  efficient  and  practicable  in  a 
large  number  of  metal  manufacturing  establishments. 

(2)  A  48-hour  week  has  proved  practicable  in  a  considerable 
number  of  establishments. 

The  reports  of  the  British  Health  of  Munitions  Workers 
Committee  contain  many  detailed  data  on  the  relation 
between  output  and  hours.  Thus,  100  women  turning 
fuse  bodies,  a  delicate  process  performed  standing  and  de- 
manding close  attention,  give  the  following  record. 5     With 


Actual  Hours 
per  Week 

Hours  of 
Broken  Time 

Relative 

Output  per 

Week 

Hours  op 
Work  M  i  i.ti- 

PLIED  BY 

Relative 
Output 

6  weeks  average 
8  weeks  average 

68.2 
59.7 

6.6 
4.6 

100 
123 

6820 
7343 

120  THE    HUMAN   FACTOR   IN    INDUSTRY 

a  reduction  of  8.5  hours  a  week,  lost  time  was  decreased 
31  per  cent,  relative  output  increased  23  per  cent,  and  the 
total  output  increased  8  per  cent. 

In  considering  these  hours  it  should  be  borne  in  mind  that 
they  refer  to  early  days  of  the  war  when  England  sought  to 
secure  maximum  output  of  munitions  by  lengthening  the 
work-day.  The  lowered  output  per  worker  in  the  second 
year  of  the  war  —  the  fact  that  long  hours  had  failed  to 
maintain  production  even  where  the  workers  were  stimu- 
lated by  patriotic  zeal,  led  to  the  appointment  of  the  com- 
mittee. It  was  found,  moreover,  that  hourly  output  was 
less  even  at  the  beginning  of  each  working  period,  a  fact 
accounted  for  by  the  anxiety  of  the  employes  to  save  them- 
selves from  the  strain  of  the  long  work  day.  A  group  of 
twenty-seven  men  on  the  heavy  work  of  sizing  fuse  bodies, 
in  a  reduction  of  hours  from  61.5  to  55.4  a  week,  increased 
their  hourly  output  22  per  cent  and  their  total  output  10 
per  cent.5 

The  committee  recommended  a  reduction  from  the  preva- 
lent week  of  from  seventy  to  eighty  hours  and  more,  to  be- 
tween fifty-six  and  seventy  hours,  varying  with  the  type  of 
work  and  the  age  and  sex  of  the  worker.  But  even  these 
shorter  hours  were  held  to  be  too  long  for  times  of  peace 
and  could  be  applied  only  to  the  strongest  workers  during 
the  emergency  of  war.  The  committee  was  avowedly  taking 
a  "short  and  not  a  long  view."  It  was  interested  solely  in 
maximum  output  of  munitions  during  the  war,  and  its  re- 
search therefore  does  not  indicate  the  hours  conducive  to 
maximum  productivity  over  a  period  of  years,  but  it  in- 
dicates nevertheless  the  relation  between  hours  and  out- 
put. 

Accidents.  —  Further  testimony  to  the  value  of  the 
shorter  work  day  are  the  accident  and  health  records. 
In  one  English  munitions  factoiy,  in  the  autumn  of  1914, 
when  the  hours  were  nine  a  day,  an  average  of  100  first-aid 


WORKING   HOURS  121 

dressings  per  1000  employed  were  made  each  month,  while 
in  the  autumn  of  1915,  when  hours  had  been  raised  to  eleven 
a  day,  the  average  rose  to  292. 5  The  firm  held  the  more 
thorough  organization  of  first-aid  treatment  only  partly 
responsible  for  this  192  per  cent  increase.  Unfortunately. 
American  accident  statistics  do  not  show  the  usual  number 
of  hours  worked  by  the  person  injured.  Records  of  individ- 
ual plants  do  throw  light  on  the  subject,  but  are  not  available 
for  publication. 

Sickness.  —  Long  hours  are  also  conducive  to  sickness 
and  absenteeism.  When  the  Solvay  Process  Company  of 
Syracuse  introduced  three  shifts  instead  of  two,  the  time 
lost  per  man  per  year  gradually  fell  from  1\  days  to  5h  days.13 
The  immediate  result  of  long  hours,  overtime,  and  night 
work  among  one  group  of  British  munitions  workers  was  a 
rise  in  the  percentage  of  sickness  from  2.9  in  July,  1914, 
and  2.4  in  December,  1914,  to  4.0  in  the  first  quarter  of  1915. 
During  the  same  period  the  accident  rate  also  increased. 
In  one  department  employing  nearly  1000  men,  the  sickness 
rate  reached  8  per  cent.  The  medical  officer  of  the  works 
attributed  this  increase  in  part  to  the  introduction  of  new 
and  inexperienced  employes,  but  held  the  fifteen-hour  day 
largely  responsible.  In  another  large  factory  the  sickness  rate 
had  risen  to  4  per  cent  and  was  still  rising,  while  in  a  third  it 
had  reached  7  per  cent.5 

The  relation  between  health  and  short  hours  is  indi- 
cated by  the  record  of  the  sick  benefit  fund  of  the  Insti- 
tute Solvay  of  Belgium.  Mr.  Fromont  introduced  the 
eight-hour  day  in  place  of  the  former  twelve-hour  day 
in  1899,  because  he  himself  had  noticed  the  exhausted 
condition  of  his  employes.  From  a  deficit  of  700  franca 
in  1889  the  fund  showed  a  steadily  growing  balance  until 
in  1904,  with  practically  the  same  number  of  members. 
there  was  a  balance  of  some  3300  francs.  There  were  no- 
ticeable drops  in  the  fund  balance  for  the  years  1895,  1900, 


122  THE   HUMAN   FACTOR   IN   INDUSTRY 

and  1902  due  to  unusual  and  serious  epidemics  of   influ- 
enza.15 

A  similar  striking  experience  is  recorded  by  the  Engis 
Chemical  Works  near  Liege.  The  management  became 
alarmed  because  the  company's  sick  benefit  fund  was  being 
constantly  depleted,  and  tried  the  experiment  of  introducing 
three  eight-hour  shifts  for  ten-hour  shifts,  believing  that 
long  hours  were  partly  responsible  for  the  high  sickness  rate. 
The  output  and  the  piecework  earnings  remained  the  same, 
the  hourly  output  and  earnings  increasing  about  33  per  cent. 
Instead  of  a  continuous  deficit  the  sick  benefit  accumu- 
lated a  growing  surplus.16 

Night  Work 

Night  Work  in  Disfavor.  —  Although  methods  of  illumina- 
tion have  improved  markedly  in  the  past  few  years,  there 
is  comparatively  little  night  work  done.  Even  the  offer  of 
bonuses  and  special  privileges  does  not  ordinarily  bring  forth 
an  adequate  number  of  applicants.  Most  industries  report 
difficulty  in  filling  their  night-shifts.  Not  only  is  this  true, 
but  there  is  a  growing  universal  opposition  to  night  work, 
especially  for  women,  as  a  menace  to  national  health.  At  a 
conference  called  by  the  Swiss  Federal  Council  in  Berne, 
1916,  an  international  agreement  to  prohibit  night  work 
for  women  was  signed  by  fourteen  European  countries,  and 
eight  of  the  States  of  this  country  have  since  passed  corre- 
sponding legislation.17  Some  night  work,  notably  in  public 
utilities  and  in  the  handling  of  food,  will  probably  always  be 
necessary.  Its  use,  however,  should  be  strictly  limited  and 
the  amount  of  night  work  reduced  to  a  minimum. 

Difficulties  of  Night  Work.  —  The  fundamental  objection 
to  night  work  is  that  sound  restful  sleep,  which  is  essential 
to  physical  efficiency,  cannot  be  secured  during  the  day. 
The  activity  of  other  members  of  the  family  and  street 
noises  make  this  almost  impossible.    Night  work  interferes 


WORKING   HOURS  123 

with  normal  human  relationships.  It  is  of  course  conceivable 
that  a  complete  inversion  of  day  and  night  habits  could  be 
made.  This  was  accomplished  successfully  by  the  Danish 
Arctic  Expedition  of  1906-1908,  to  the  extent  that  even 
the  ordinary  temperature  cycle  of  the  body,  high  in  the  late 
afternoon,  low  in  the  early  morning,  accommodated  itself  to 
the  change.18  But  the  night  worker  is  tempted  to  burn 
the  candle  at  both  ends,  playing  by  day  and  working  by 
night,  snatching  a  little  sleep  intermittently  through  the  day 
and  remaining  drowsily  awake  through  the  night.  Some  of 
the  injurious  effects  are  not  apparent  for  a  long  period,  but 
there  is  abundant  evidence,  nevertheless,  that  night  work  is 
uneconomical,  industrially  as  well  as  socially. 

Output.  —  Night  work  means  not  only  physically  inef- 
ficient workers,  but  artificial  lighting  makes  the  work  diffi- 
cult, supervision  is  usually  unsatisfactory  and  the  machinery 
suffers  from  incessant  use  and  from  the  change  of  workers- 
The  British  Committee  found  a  group  of  nine  night-shift 
workmen  in  a  munitions  factory  whose  output  was  14  per 
cent  less,  over  a  period  of  four  weeks,  than  that  of  nine 
day-shift  workmen  engaged  in  the  same  process  in  the  same 
factory ;  twelve  women  employed  on  continuous  night  work 
for  twelve  weeks,  who  during  thai  time  gave  a  mean  output 
11  per  cent  below  that  of  a  ten-week  period  of  alternating 
night  work;  and  many  similar  instances.  There  were  also 
signs  of  a  progressive  deterioration  in  efficiency  among 
night  workers  as  compared  with  day  workers.  The  Com- 
mittee concluded  that  a  continuous  night-shift  gave  a 
definitely  less  output  than  a  continuous  day-shift.  They 
failed  to  obtain  evidence  tliat  the  greater  output  of  the 
continuous  day-shift  balanced  this  inferiority.  Therefore 
where  nighl  work  was  necessary,  the  discontinuous  system 
was  found  more  productive  than  the  continuous  one.18 

Accidents. — Accidents  are  of  comparatively  little  value 
in  measuring  the  effects  of  night  work.     Those  chosen  for 


124  THE    HUMAN   FACTOR   IN   INDUSTRY 

night  work  are  usually  of  superior  physique,  and  at  night 
there  is  less  crowding  and  less  traffic  in  the  factory,  due  to 
the  shipping  of  materials  and  supplies.  The  accident  fre- 
quency has,  therefore,  been  found  to  be  slightly  less  by 
night  than  by  day. 

Sickness.  —  Sickness  statistics  are  more  illuminating. 
The  factory  reports  of  Alsace-Lorraine  cite  the  case  of  a 
cotton  mill  which  introduced  a  permanent  night- work  shift 
in  1889  and  found  that  in  one  year,  for  every  1000 
women  in  the  day-shift  there  were  510  cases  of  illness 
and  5280  days  lost,  while  among  the  day  and  night-shift 
force  the  cases  of  illness  were  625  and  the  days  lost, 
9130.19  The  Finnish  Senate  in  1909  ordered  an  inves- 
tigation of  women  night  workers  and  found  that  among 
2659  engaged  in  work  of  various  kinds,  35.2  per  cent 
suffered  from  general  nervous  weakness.  Only  41.4  per  cent 
managed  to  sleep  much  more  than  five  hours  a  day,  while 
34.1  per  cent  slept  less  than  that.20 

Three  eight-hour  shifts,  in  place  of  two  shifts,  increase 
output  by  benefiting  the  workers  physically  and  by  reducing 
the  time  during  which  machinery  must  stand  idle  while  the 
workers  have  their  meals. 

Professor  Kent's  tests  in  1916  substantiated  these  con- 
clusions, and  showed  in  addition  that  because  of  the  time 
necessary  for  the  adjustment  of  bodily  temperatures  and 
habits,  a  weekly  shift  from  day  to  night  work  is  too  fre- 
quent. He  discovered  that  while  fatigue  always  developed 
more  quickly  by  night  than  by  day,  the  development  dur- 
ing the  night  was  less  at  the  end  than  at  the  beginning  of 
the  week's  work.  He  suggested  that  a  monthly  shift  is  more 
adapted  to  the  need  of  the  workers.21 


WORKING    HOURS  125 

Overtime 

Overtime  Expensive.  —  Of  the  state  laws  in  this  country 
regulating  hours  of  work,  only  one  third  permit  overtime 
for  any  reason,  and  these  only  to  a  limited  extent  in  an  emer- 
gency or  for  special  reasons.17  The  objections  to  all  over- 
time work  made  by  the  British  Committee  were  that  (1)  the 
severe  strain  on  the  management,  executive  staff,  foremen 
and  workers  adversely  affected  quantity  and  quality  in  out- 
put, and  that  (2)  it  entailed  a  large  amount  of  lost  time  due 
largely  to  sickness  and  partly  to  slackness  on  the  employe's 
part  in  normal  working  hours  in  order  to  prolong  the  neces- 
sary overtime  with  its  extra  pay.  In  one  department  of  a 
British  munitions  factory,  where  180  unusually  keen  and 
steady  men  were  at  work,  averaging  39  years  of  age,  con- 
tinuous overtime  raised  the  percentage  ratio  of  lost  time  from 
3.1  of  the  gross  normal  hours  in  June,  1915,  to  8.4  in  June, 
1916.  In  another  department  where  over  300  men  were  on 
heavy  work  the  same  ratio  increased  from  3.2  in  June,  1915, 
to  6.1  in  June,  1916. 18  And,  vice  versa,  a  reduction  in  over- 
time has  been  found  to  have  a  disproportionate  effect  on  the 
reduction  of  lost  time. 

Restrictions  on  Use  of  Overtime.  —  The  executive  of  a 
large  American  shoe  company  employing  4000  men  has 
declared  overtime  to  be  advisable  only  (1)  to  offset  breaks 
in  continuous  production,  (2)  where  only  a  small  number  of 
employes  are  affected,  and  (3)  for  short  periods.12  In 
general  all  of  the  objections  made  to  the  regular  long  work- 
ing day  may  be  made  to  overtime  with  the  additional  fact 
to  consider,  that  overtime  means  extra  pay. 

Sunday  Work 

Sunday  Work  as  Expensive  as  Other  Overtime.  —  The 
difficulties  involved  in  Sunday  work  are  the  same  as  with 
other  overtime  work.     Supervision   is  l<^s  efficient,  higher 


126  THE    HUMAN   FACTOR   IN    INDUSTRY 

rates  of  pay  increase  the  cost  of  running  the  plant,  and  work 
outside  of  the  customary  hours  of  work  in  the  community 
leads  to  "  soldiering  "  and  loafing,  because  the  worker  is  in 
a  different  frame  of  mind  than  at  ordinary  times.  He  feels 
in  a  holiday  mood  and  is  not  inclined  to  take  his  work  as 
seriously.  Moreover,  though  attendance  is  apt  to  be  good 
on  Sundays,  when  there  is  extra  compensation,  it  results  in 
bad  attendance  records  during  the  week.18 

Importance  of  One  Day's  Rest  a  Week.  —  English  ex- 
perience led  the  British  Committee  to  conclude  that  one 
day's  rest  in  seven,  preferably  on  Sunday,  was  more  essential 
in  maintaining  the  health  and  morale  of  the  working  force 
than  any  shortening  of  the  regular  work  day.18 

Output  Lowered.  —  Working  on  Sunday  at  a  rifle  car- 
tridge-making factory  was  shown  to  affect  adversely  the  rate 
of  output.  The  weekly  output  after  a  Sunday  holiday 
was  compared  to  that  in  the  weeks  before  and  after,  when 
Sunday  was  worked  in  full.  The  results  showed  a  higher 
rate  per  machine  per  hour  in  the  week  following  a  Sunday 
holiday.16 

Sickness  Increased.  —  Another  striking  example  of  the 
deleterious  effect  of  Sunday  work  is  given  in  the  case  of  a 
factory  where,  in  the  spring,  Sunday  overtime  was  the  rule, 
and  at  one  time  22  per  cent  of  the  men  were  ill.  In  August, 
when  Sunda}r  work  was  greatly  reduced,  although  week-day 
overtime  continued  heavy,  only  a  trifle  over  4  per  cent 
were  ill.  The  spring  had  not  been  an  abnormally  unhealthy 
one,  so  this  great  reduction  could  be  attributed  only  in  part 
to  the  season.18 

The  Working  Period 

Shorter  Work  Day  vs.  Rest  Periods.  —  There  are  two 
opposing  tendencies  in  the  shorter  hours  movement.  One 
is  to  divide  the  working  day  into  several  parts  by  inserting 
rest  periods  and  lengthening  the  lunch  hour,  and  the  other  is 


WORKING   HOURS  127 

to  compress  the  working  day  into  fewer  hours  by  eliminating 
rest  periods.  In  some  States  legislation  is  beginning  to  re- 
quire a  forty-five  minute  or  one  hour  lunch  period  in  certain 
occupations  and  for  certain  classes  of  workers.  On  the 
other  hand,  as  in  the  case  of  the  Ford  Motor  Company, 
substituting  three  eight-hour  shifts  for  two  shifts  has  meant 
in  many  factories  that  the  employes  are  given  time  for  only 
a  pick-up  sandwich  lunch.  Lord  Leverhulme,  owner  of  the 
Port  Sunlight  Soap  Works,  has  recently  pronounced  him- 
self in  favor  of  a  six-hour  work  day  for  all  employes,  worked 
in  two,  three,  or  four  shifts,  without  interruption  for  meals.22 
To  decide  which  course  to  pursue  it  is  necessary  to  trace 
the  progress  of  fatigue  in  the  workers  during  the  day  and  to 
determine  the  effect  which  rest  periods  have  in  lessening 
fatigue. 

Little  Variation  in  Fatigue  during  the  Year,  Week,  or  Day. 
—  The  British  Association  for  the  Advancement  of  Science 
in  1915  carried  out  an  extensive  investigation  of  the  rela- 
tion between  the  period  of  work,  fatigue,  and  accidents.7 
They  found  the  universal  experience  to  be  that  the  progress 
of  fatigue  varied  little  between  one  week  of  the  year  and 
another,  between  one  day  of  the  week  and  another,  or  be- 
tween morning  and  afternoon.  But  there  was  a  great 
difference  in  the  fatigued  condition  of  the  worker  during 
the  first  hour  and  the  third  or  fourth  hour  of  morning  work. 
This  variation  repeated  itself  in  the  afternoon  working 
period. 

Reasons  for  This  Absence  of  Variation.  —  Vacations  are 
still  too  negligible  a  factor  in  industry  to  show  any  effect 
on  the  wage  earners'  efficiency  during  the  year.  The  evi- 
dence of  weekly  fatigue  is  confused  by  marked  variations  in 
different  localities  and  countries,  due  to  the  different  week- 
end habits  of  the  workers  in  regard  to  both  drinking  and 
recreation.  In  American  industries  there  is  often  a  sur- 
prising drop  in  efficiency    on    Monday,   which   is  variously 


128 


THE   HUMAN   FACTOR   IN   INDUSTRY 


attributed  to  week-end  dissipation,  or  to  a  loss  of  practice 
in  manipulating  the  tools  or  machinery,  and  a  non-adjust- 
ment to  the  rhythms  of  work.  Moreover,  efficiency  rises  on 
Saturdays,  probably  because  of  the  stimulus  of  anticipating 
the  coming  holiday.  Thus  the  Ohio  Industrial  Commission 
for  1914  found  accidents  involving  disability  for  one  day  or 
more  to  occur  in  different  industries  as  follows : 


Contracting 
(Building) 

Metals 

Coaches 

Coal 
Mining 

Pottery 
Glass 

Industry 
Total 

Monday 

321 

2,268 

229 

204 

177 

4,632 

Tuesday 

269 

2,224 

214 

194 

199 

4,522 

Wednesday 

288 

2,187 

223 

165 

171 

4  388 

Thursday 

283 

2,215 

218 

184 

172 

4,436 

Friday 

279 

2,197 

224 

165 

192 

4,377 

Similar  figures  are  given  by  German  reports.  In  Belgium, 
on  the  contrary,  Saturday  is  the  most  fatal  day  of  the  week, 
while  in  England  accidents  are  fewest  on  Monday.  There 
is  surprisingly  small  evidence  of  accumulating  daily  fatigue 
and  decreased  efficiency  in  the  afternoon  period,  which  is 
shown  by  studies  of  daily  output  and  fatigue.  This  is  prob- 
ably due  to  the  fact  that  the  operator  becomes  more  skillful 
with  the  practice  of  work  in  the  preceding  hours,  and  is 
stimulated  to  renewed  effort  by  the  anticipation  of  relief 
from  work. 

Variation  in  Fatigue  during  the  Work  Period  as  Shown 
by  Output.  —  The  variation  of  fatigue  during  the  working 
period  is  found  to  produce  an  efficiency  curve  rising  to  a 
maximum  at  ten  o'clock  in  the  morning  and  again  at  three 
in  the  afternoon.  This  common  experience  is  illustrated 
by  the  following  figures,  showing  the  distribution  during 
the  work  day  of  the  total  output  of  six  typesetters  working 
at  piece  rates,  which  was  made  by  the  Italian  physiologist, 


WORKING   HOURS  129 

Pieraccini.4    The  number  of  lines  set  during  each  hour  was 
as  follows : 

Hours  :  8-9,  9-10,  10-11,  11-12,  12-2,  2-3,  3-4,  4-5 

No.  of  Lines :    121    151      130        125    Lunch  142  124    96 

Period 

Accidents.  —  Mr.  Lescohier  found  the  daily  distribution 
of  all  industrial  accidents  in  Minnesota  in  1910  to  show 
marked  increases  in  accidents  at  certain  hours  of  the  morn- 
ing and  afternoon.  These  seem  to  have  a  definite  relation 
to  the  fatigue  of  the  workers  and  to  the  number  of  hours 
that  they  had  been  at  work.23  European  and  other  American 
experience  bears  out  these  findings  as  to  the  occurrence  of 
accidents.24 

The  British  Association  found  that  output  during  a  five- 
hour  working  period  was  small  in  the  first  hour,  greatest 
in  the  second  hour  and  that  it  decreased  steadily  after  the 
second  hour.  Accidents  occurred  least  often  in  the  first 
hour  and  more  frequently  each  hour  thereafter,  until  the 
last  hour,  when  the  number  of  accidents  slightly  decreased.7 

Rest  Periods  as  a  Preventive  of  Fatigue.  —  The  only 
means  of  preventing  the  drop  in  output  and  the  increase 
in  accidents  which  occur  during  the  latter  half  of  the  work 
period  is  by  forestalling  fatigue  with  regular  scientifically 
established  rest  periods.  At  present,  rest  periods  are  the 
exception  rather  than  the  rule  in  American  industries,  and  are 
granted  almost  exclusively  to  women. 

Growing  Popularity  of  Rest  Periods.  —  In  a  recent  study 
of  conditions  in  431  American  establishments  in  a  wide 
variety  of  industries,  10")  were  providing  reel  periods  in 
some  departments.  In  occupations  involving  greal  nerv- 
ous strain,  such  as  thai  of  the  telephone  operator,  or 
in  the  monotonous  work  of  the  typist,  and  the  ele- 
vator man,  or  in  the  ho1  work  of  a  foundry  man,  pauses 
are  more  frequent  than  in  ordinary  factory  work.  Rest 
periods  vary  in  length  for  different  classes  of  workers.     In  a 


130  THE    HUMAN    FACTOR    IN    INDUSTRY 

food  factory  all  the  women  rest  fifteen  minutes  twice  a  day 
and  bundlers  half  an  hour.  In  eleven  of  the  factories  re- 
ported, rest  was  provided  by  shifting  workers  from  one 
occupation  to  another  at  intervals  during  the  day,  but  this 
can  be  done  only  where  the  processes  are  simple.25 

Their  Length  and  Frequency.  —  Experiment  alone  can 
determine  the  desirable  frequency  and  length  of  the  rest 
periods  to  be  introduced  in  the  working  spell.  Taylor 
found,  for  instance,  that  in  handling  pig-iron,  weighing  over 
92  pounds  a  pig,  a  workman  should  be  under  load  only  43 
per  cent  of  his  working  time  to  insure  maximum  efficiency.26 
Mr.  Gilbreth  in  his  "  Fatigue  Study  "  has  given  an  interest- 
ing example  of  the  results  of  proper  rest  periods.  Some 
girls  engaged  in  folding  handkerchiefs  were  told  to  pause 
every  sixth  minute  and  at  the  end  of  each  hour  to  walk  and 
talk  for  six  minutes.  Their  posture  was  varied  also  by 
sitting  and  standing.  The  result  of  introducing  this  sys- 
tem was  that  the  output  was  three  times  the  amount  of  the 
previous  best  week's  work.27 

Enforcing  Rest  Periods.  —  Rest  periods,  whether  several 
five-minute  periods,  or  one  half-hour  period,  should  be  regu- 
larized and  enforced  and  the  rest  length  determined  after 
making  a  plant  survey  and  time  study  for  each  occupation. 
Pieceworkers  may  object  to  enforced  rest  periods,  but  if  the 
management  guarantees  full  pay  while  introducing  them,  their 
objections  will  be  easily  overcome  when  they  find  their  out- 
put has  not  suffered.  Indeed,  the  primary  purpose  of  these 
pauses  is  to  raise  the  efficiency  of  the  worker  through  reduc- 
tion of  temporary  fatigue  and  prevention  of  cumulative 
fatigue. 

From  these  studies  evidence  points  to  the  fact  that  fatigue 
accumulates  rapidly  during  the  third  and  fourth  hour  of 
work.  Therefore,  even  if  the  work  day  were  condensed  to 
six  hours,  fatigue,  as  a  cause  of  accidents,  ill  health,  and 
underproduction,  would  not  be  eliminated.     It  is  possible, 


WORKING    HOURS  131 

however,  that  the  work  day  could  be  condensed  without 
danger  if  the  lunch  hour  were  eliminated  and  brief  rest 
periods  retained.  This  six-hour  work  day  of  two,  three,  or 
four  shifts  might  therefore  accomplish  what  Lord  Leverhulme 
hopes  —  increased  strength  and  happiness  for  the  workers, 
greater  stability  of  labor,  increased  production  and  lessened 
overhead  charges. 

Vacation  Periods 

Vacations  for  the  Rank  and  File.  —  Related  to  the  prob- 
lem of  working  hours  is  that  of  vacations.  The  time  has 
been  when  a  paid  vacation  in  industry  was  rare,  usually 
limited  to  the  management  but  extended  occasionally  to 
the  clerical  force  as  well.  Now  we  find  the  Bourn ville  Works 
in  England  granting  to  most  of  its  women  employes  21 
days'  vacation  with  pay  during  the  year,  —  5  days  at  Christ- 
mas, 3  days  at  Easter,  1  day  at  Whitsuntide,  and  12  days  at 
Midsummer.  To  receive  a  full  summer  vacation  a  new  girl 
time-worker  must  have  been  with  the  company  nine  months. 
The  fewest  holidays  any  employe  can  receive  are  three  days 
at  Midsummer  and  at  Christmas.  For  pieceworkers,  the 
works  are  closed  for  ten  days  in  the  summer  and  about  five 
days  at  Christmas.  The  men  employes  are  allowed  a  maxi- 
mum vacation  of  12  days  plus  a  bonus  day  where  the 
worker  is  entitled  to  it.28 

Every  employe  of  the  Solvay  Process  Company  who  has 
been  with  the  company  one  year  has  one  week's  vacation 
with  pay.  After  two  years'  employment  the  Black  Com- 
pany, manufacturers  of  cloaks  and  suits  in  Cleveland, 
gives  one  week's  vacation  with  pay.  Sears,  Roebuck  and 
Company,  after  three  years'  service,  gives  two  weeks'  vaca- 
tion, and  before  that  one  week.  With  Filcne's  of  Boston, 
the  vacation  period  is  apportioned  in  accordance  with  the 
length  of  service,  with  a  minimum  of  one  day  for  each  month's 
service,  and  a  maximum  of  two  weeks. -J     In  the  Metropoli- 


132  THE   HUMAN   FACTOR   IN    INDUSTRY 

tan  Life  Insurance  Company,  every  employe  in  the  serv- 
ice at  the  beginning  of  the  calendar  year  receives  two  weeks' 
vacation  with  full  pay,  and,  if  entering  the  service  after 
January  first,  but  before  March  first,  an  employe  receives 
one  week.  Additional  vacations  are  granted  for  length  of 
service  as  follows : 30 

After    5  years  of  service 1  day 

After  10  years  of  service 3  days 

After  15  years  of  service 1  week 

After  20  years  of  service 2  weeks 

An  increasing  number  of  factories  shut  down  during 
the  period  of  stock-taking,  when  this  can  be  done  during 
the  summer  months.  This  complete  shutdown  is  some- 
times less  discouraging  and  expensive  than  arranging  vaca- 
tions for  the  employes  at  different  times  throughout  a  long 
period. 

Annual  Vacations  Enforced  by  Unions  and  Law.  —  The 
Unions  and  state  legislation  are  beginning  to  enforce  annual 
vacations  for  the  rank  and  file  of  employes.  In  1915  the 
Milk  Drivers'  Union  of  Chicago  signed  an  agreement  with 
their  employers  which  provided  two  weeks'  annual  vaca- 
tion with  pay.  Some  half  dozen  States  provide  by  law 
annual  vacations  for  certain  classes  of  workers.  Employes 
of  the  federal  government  and  of  many  cities  are  granted 
annual  vacations  of  not  less  than  a  week,  with  pay.17 

There  are  no  available  data  as  to  the  value  of  the  vacation 
period  measured  in  improved  output  through  the  year. 
There  is  scarcely]  need  of  any.  The  companies  which  pro- 
vide vacations  with  pay  undoubtedly  reap  the  benefit  in  the 
loyalty  and  better  health  and  spirits  of  their  working  force. 

Conclusion 

Shorter  Hours  Desirable.  —  There  is  every  evidence 
that  total  as  well  as  hourly  output  is  decreased  by  a  long 


WORKING   HOURS  133 

work  day,  overtime,  night  work,  or  long  periods  of  work 
with  insufficient  rest  periods.  We  can  no  longer  accept 
the  verdict  of  an  English  manufacturer  who  wrote  to  the 
Leeds  Intelligencer,  in  1830,  that  the  long  twelve-and-a-half 
or  thirteen-hour  day  worked  by  children  in  woolen  and 
worsted  mills  was  "  rendered  a  comfort  by  the  regular  hours 
of  rising  from  and  retiring  to  bed."  31  Experience  proves 
that  long  hours  are  neither  a  comfort  to  the  worker,  nor  a 
benefit  to  the  manufacturer  or  the  stockholder.  The 
British  Health  of  Munitions  Workers  Committee,  appointed 
in  1915,  might  well  have  broadened  their  conclusion  as  to 
the  desirable  length  of  the  work  day  for  women  in  munitions, 
to  include  all  workers  in  all  work : 32 

Happily,  there  should  be,  in  the  matter  of  hours  of  labor  for 
women,  little  conflict  between  the  interests  of  the  home  and  the 
interest  of  munitions,  for  the  hours  which  conduce  most  to  a  satis- 
factory home  life  and  to  health  conduce  most  to  output. 

Need  for  Experiment.  —  It  is  impossible  to  make  any 
dogmatic  assertions  regarding  the  desirable  length  of  the 
work  day  or  the  work  period.  It  is  clear  that  in  the  past, 
employer,  employe,  and  community  have  alike  suffered 
from  a  misconception  of  the  relation  between  the  length  of 
the  work  day  and  total  output.  Experiment  alone  can  de- 
termine the  working  period  conducive  to  1  lit*  greatest  ef- 
ficiency in  production  for  each  type  of  work  and  worker. 
In  every  industry  and  every  occupation  the  length  and  time 
of  the  working  day  must  be  adjusted  to  the  nature  of  the 
work,  the  working  conditions  and  I  In-  sex  and  age  of  the 
workers  involved.  It  must  be  remembered,  too,  thai  maxi- 
mum efficiency  in  production  cannot  be  achieved  in  a  few- 
days,  or  weeks,  or  even  years.  The  real  result  of  shorter 
hours  which  give  employes  leisure  time  for  rest,  recreation, 
education,  and  the  building  of  homes  and  the  improve- 
ment of  them  can  be  measured  only  after  long  periods  by 


134  THE   HUMAN   FACTOR   IN   INDUSTRY 

such  indefinite  quantities  as  stability  of  labor,  and  health 
and  happiness. 

Cooperation  of  Employes  Essential  to  Success  of  Shorter 
Hours.  —  All  employers  who  try  to  increase  production  by 
shortening  the  working  hours  would  do  well  to  heed  the 
warning  of  the  British  Committee  : 

If  the  proper  adaptation  to  particular  kinds  of  labor  of  the  rela- 
tion of  spells  or  shifts  of  work  to  rest  intervals  and  to  holidays  is 
to  be  determined  by  appeal  to  experiment,  it  will,  of  course,  be 
an  essential  condition  for  success  that  the  workers  should  co- 
operate with  the  employing  management.  It  is  not  surprising 
that  where  employers,  following  tradition  rather  than  experiment, 
have  disobeyed  physiological  law  in  the  supposed  interests  of  gain, 
the  workers  have  themselves  fallen  very  commonly  into  a  tradition 
of  working  below  their  best  during  their  spells  of  labor.  It 
would  be  out  of  place  here  to  touch  on  the  economic  and  social 
problems  which  arise  in  this  connection,  but  until  such  solutions 
are  found  for  them  as  will  bring  a  hearty  cooperation  between 
employers  and  employes,  there  will  be  no  certain  prospect  of 
determining  the  true  physiological  methods  for  getting  the  best 
results  in  modern  industrial  occupations. 


CHAPTER  VI 

WORKING   CONDITIONS 

Health,  Happiness,  and  Efficiency  of  Employes  De- 
pendent on  Working  Conditions.  —  The  physical  environ- 
ment of  employes  is  a  determining  factor  of  health,  happi- 
ness and  efficiency.  Good  ventilation,  lighting  and  sanitary 
conditions  contribute  directly  to  the  employe's  physical 
well-being  and  the  ease  with  which  he  can  work.  Fire 
protection  and  accident  prevention  make  his  labor  power 
more  secure.  Attractive  surroundings  afford  relief  from  the 
strain  of  monotonous  or  fast  work.  To  this  end  a  button 
factory  in  Rochester,  New  York,  provides  phonograph 
music  intermittently  throughout  its  various  departments. 
In  the  machine  shops  where  noise  prohibits  music,  potted 
plants  are  arranged  in  convenient  places  between  the  ma- 
chines. Window  boxes,  vines,  trees,  and  shrubs  decorate 
the  exterior  of  many  factory  buildings,  which  are  designed 
as  artistically  as  private  suburban  homes.  Efforts  to  beau- 
tify the  industrial  environment  of  theemploye  are,  it  is  true, 
of  less  importance  than  (he  endeavor  to  prevent  accidents, 
occupational  disease  and  fire,  and  to  provide  adequate 
ventilation,  lighting,  and  sanitation.  Nevertheless,  since  the 
employe  spends  at  least  one  third  of  his  day  in  the  workshop, 
it  is  desirable  that  his  surroundings  should  not  only  make 
for  efficiency,  but  stimulate  his  aesthetic  and  creative 
faculties. 

Accident  Prevention 

Growth  of  Accident  Prevention  Movement.  —  No  phase 
of  labor  maintenance  has  mown  bo  rapidly  as  the  move- 

135 


136  THE   HUMAN   FACTOR   IN   INDUSTRY 

ment  to  prevent  industrial  accidents.  In  1906  the  first 
exhibit  of  safety  appliances  in  this  country  was  held  under 
the  auspices  of  the  New  York  Institute  for  Social  Service. 
This  led  to  the  organization  of  the  American  Museum  of 
Safety  (1907).  In  1912  a  small  group  of  engineers  met  in 
Milwaukee  and  launched  the  National  Safety  Council, 
which  has  taken  the  lead  in  the  war  against  accidents.  In 
four  years'  time  it  included  15,400  representatives  from 
3293  firms,  covering  4,500,000  workmen.1 

There  are  a  number  of  reasons  for  this  remarkable  interest. 
Not  until  recently  have  United  States  statistics  of  accidents 
in  industry  and  then*  sequelae  been  available.  These  have 
formed  the  basis  of  active  propaganda  and  legislative  action. 
Notwithstanding  this,  it  is  estimated  that  35,000  workmen 
are  still  killed  annually  —  one  every  12  minutes  —  and 
probably  400,000  receive  injuries  sufficiently  serious  to  cause 
them  to  lose  time  from  their  work.  In  Pennsylvania  alone 
in  1916  industrial  accidents  caused  lost  time  equivalent  to 
3,025,371  working  days  and  $7,535,059  in  wages.2 

This  loss  was  formerly  borne  entirely  by  the  injured  work- 
man, occasionally  assisted  by  fellow-workers  and  the  em- 
ployer. Workmen's  compensation  laws  enacted  in  most  of 
the  States  have  divided  the  loss  by  charging  a  percentage  to 
the  employer.  These  laws  have  not  only  transferred  the 
cost  of  accidents  from  employe  to  employer,  but  by  requir- 
ing systematic  reporting  of  accidents  have  furnished  neces- 
sary data  as  to  their  extent  and  seriousness.  These  in  turn 
have  led  to  safety  campaigns. 

Possibility  of  Preventing  Accidents.  —  Experience  has 
shown  that  at  least  50  per  cent  of  the  industrial  accidents 
are  preventable.  Twenty-two  of  the  foremost  industrial 
concerns  of  the  United  States  report  an  average  reduction 
of  54  per  cent  in  yearly  accidents  after  the  introduc- 
tion of  organized  safety  work.  The  International  Har- 
vester Company,  the  Neenah  Paper  Company,  the  Illinois 


WORKING   CONDITIONS  137 

Steel  Company,  and  the  Milwaukee  Coke  and  Gas  Com- 
pany each  reported  a  reduction  of  more  than  80  per 
cent.3  In  eighteen  months  the  Port  Huron  Engine  and 
Thresher  Company,  in  a  plant  employing  between  three 
and  four  hundred  people,  reduced  accidents  56  per  cent 
and  cut  down  compensation  costs  from  $2864  in  1913-1914 
to  $1263  in  1914-1915.4 

Safety  Devices.  —  To  accomplish  these  results  many 
ingenious  safety  devices  have  been  developed  to  protect 
workmen.  Glass  hoods  catch  the  fine  steel  splinters  from 
the  emery  wheel ;  goggles  cover  the  metal  grinder's  eyes ; 
"  congress  shoes  "  with  steel  plated  toes  protect  the  molder 
from  a  scalding  should  he  spill  the  hot  metal  he  is  carrying ; 
"  safety  nets  "  catch  the  falling  workmen,  tools,  or  materials 
in  construction  work;  automatically  locking  doors  protect 
elevator  shafts  in  office  building  and  factory,  etc. 

Importance  of  Personal  Equation  in  the  Reduction  of  Ac- 
cidents. —  Mechanical  appliances  play  an  essential  but 
comparatively  small  part  in  accident  prevention.  By  far 
the  larger  number  of  accidents  is  dependent  on  the  person 
or  persons  involved.  This  has  been  demonstrated  repeatedly 
by  studies  of  causes  of  accidents  and  of  methods  of  pre- 
venting them.  The  experience  of  the  Illinois  Steel  Company, 
one  of  the  pioneer  companies  in  safely  work,  has  led  them 
to  evaluate  the  different  methods  of  attacking  the  accident 
problem.  Only  17^  per  cent  of  the  total  reduction  in 
accidents  is  attributed  to  the  introduction  of  mechanical 
appliances,  and  another  8  per  cent  to  improved  lighting  and 
cleanliness.  Educating  by  means  of  lectures,  or  bulletins, 
or  instruction  while  a1  work,  was  held  accountable  for  30 
per  cent  of  the  reduction  and  the  organization  of  Safety 
Committees  for  20  per  cent.5    This  experience  is  typical. 

Necessity  of  Arousing  Workers'  Interest  in  "  Safety 
First."  —  If  only  25  per  cent  of  all  industrial  accidents  can 
be  traced  directly  to  unguarded  or  dangerous  machinery 


138  THE    HUMAN    FACTOR    IN    INDUSTRY 

and  equipment  it  is  obviously  necessary  to  stimulate  the 
interest  of  the  employes  in  "  Safety  First."  Bonuses  to 
foremen  for  best  departmental  records  and  to  workmen 
for  useful  safety  suggestions  have  been  found  to  serve  the 
purpose.  The  Fisk  Rubber  Company  of  Chicopee  Falls, 
Mass.,  reduced  accidents  50  per  cent  in  one  month 
by  the  introduction  of  safety  contests.6  Safety  lectures, 
especially  if  accompanied  by  lantern  slides,  moving  pictures 
and  pictorial  bulletins  are  quick  to  attract  the  workman's 
attention.  The  most  valuable  ones  are  those  issued  weekly 
by  the  National  Safety  Council.  They  are  simple,  direct, 
and  usually  illustrated  with  photographs  or  drawings.  These 
are  at  present  used  by  many  concerns.  If  conspicuously 
posted  and  strikingly  presented,  accident  statistics  can  often 
be  used  to  advantage.  A  committee  of  logging  operatives 
in  Wisconsin  made  effective  use  of  them  by  posting  such 
rules  as  the  following  :  7 

Rule  1.  Carrying  ax.  The  only  safe  way  to  carry  an  ax  is  with 
the  handle  on  the  shoulder  and  the  head  back  of  the  shoulder. 
Many  men  who  have  carried  the  ax  with  the  head  under  the  arm 
have  stumbled  and  fallen  and  have  been  seriously  injured.  Two 
hundred  and  seventy-one  men  were  injured  while  handling  axes. 

Rule  5.  When  a  tree  starts  to  fall,  get  out  of  danger  at  once. 
Look  up  and  watch  for  falling  limbs.  Two  hundred  and  eleven 
men  were  injured  and  fifteen  men  were  killed  by  falling  trees  and 
limbs. 

Employes'  Safety  Committees.  —  No  method  is  so  suc- 
cessful in  arousing  the  workers'  interest  and  watchfulness  as 
the  formation  of  rotating  safety  committees.  During  the 
first  three  years  of  the  safety  work  of  the  Chicago  North- 
western Railway  Company,  the  men  who  had  served  on 
committees  reported  6000  points  of  danger,  and  97  per  cent 
of  their  suggestions  were  found  practical  and  adopted.8 

Methods  of  organizing  the  safety  work  and  securing  co- 
operation  between   the   management,   the  expert  adviser, 


WORKING    CONDITIONS  139 

and  the  men,  will  vary  with  the  size  of  the  plant.  The 
California  Industrial  Accident  Commission  has  suggested  the 
following  organization  for  plants  : 5 

(1)  With  less  than  50  employes. 

The  manager  or  superintendent  in  charge  of  all  safety  work 
should  appoint  one  of  his  employes  to  make  weekly  inspections  and 
to  report  to  him  all  recommendations  in  written  form.  These 
recommendations  with  the  accident  reports  should  be  filed  for 
future  reference. 

(2)  With  51  to  500  employes. 

A  safety  committee  of  not  less  than  3  persons,  including  the 
manager,  a  superintendent,  and  some  other  high-grade  employe 
should  receive  weekly  reports  from  a  competent  safety  inspector. 
The  safety  inspector  should  cooperate  with  a  workmen's  committee, 
which  should  be  a  rotating  committee,  one  member  being  replaced 
by  a  new  one  every  month. 

(3)  With  501  to  1000  employes  and  over. 

In  addition  to  the  general  committee  a  foremen's  committee 
should  be  appointed  consisting  of  about  5  foremen.  Workmen's 
committees  should  exist  in  several  departments.  A  full  time 
safety  inspector  will  probably  be  necessary  even  where  the  plant 
numbers  less  than  1000  employes  and  will  he  essential  for  the  larger 
plants. 

Safety  Committee  Meetings.  —  The  plan  proposed  by  the 
National  Safety  Council  and  successfully  adopted  by  the 
Port  Huron  Engine  and  Thresher  Company  provides  for  a 
Shop  Safety  Committee  composed  of  one  man  from  each 
department  in  addition  to  the  Central  Safety  Committee 
and  safety  inspector.  It  is  important  that  the  foremen  have 
i  voice  in  drawing  up  the  safety  rules  which  they  are  asked 
to  enforce.  Every  member  of  the  committee  fills  out  a 
suggestion  blank  at  each  weekly  meeting.  The  weekly 
meetings  an'  held  on  company  time  at  company  expense 
for  the  discussion  of  llie  previous  week's  accident  record, 
and  the  study  of  bulletins  and  safety  literature.  Every 
sixty  days  the  company  gives  the  committee  a  smoker  and 
distributes  prizes  for  the  best  safety  suggestions. 


140  THE   HUMAN   FACTOR   IN   INDUSTRY 

It  is  relatively  simple  in  the  initial  stages  of  a  safety- 
campaign  to  arouse  the  workers'  interest.  It  is  more  diffi- 
cult to  retain  this  interest  until  the  individual  has  formed 
the  "  safety  habit."  To  do  this,  all  conceivable  means  of 
popularizing  "safety  first  "  are  needed. 

Physical  Examinations  a  Preventive  Measure.  —  One 
of  the  most  important  accident  preventives  is  the  prelimi- 
nary physical  examination  and  periodic  reexamination  of 
all  employes.  Fatigue,  alcoholism,  and  disease  make  the 
background  of  a  large  number  of  accidents  which  usually 
have  been  attributed  to  the  employer's  negligence.  Their 
detection  and  correction  will  bring  about  a  substantial  de- 
crease in  the  accident  rate. 

Dollars  and  Cents  Value  of  Safety  and  Medical  Work. 
—  The  expense  of  installing  an  adequate  medical  depart- 
ment along  with  the  centralized  employment  bureau,  which 
would  result  in  a  decreased  accident  rate  through  aiding 
in  the  careful  selection  and  placement  of  workers,  has  been 
found  to  be  a  paying  investment.  The  Avery  Company  of 
Peoria,  Illinois,  found  the  total  expense  of  maintaining 
an  employment  department,  an  extensive  medical  depart- 
ment, a  safety  inspector,  of  paying  compensation,  and  of 
carrying  insurance  for  excessive  liability  only,  to  be 
28  per  cent  less  than  the  cost  of  insurance  for  full  acci- 
dent compensation  coverage  if  the  medical  and  safety 
work  had  been  left  undone.  In  1916  this  safety  work 
plus  insurance  cost  $1.80  per  $100  pay  roll,  as  opposed  to 
$2.48,  which  was  the  insurance  rate  per  $100  pay  roll  for 
full  coverage.9 

The  Riverside  Portland  Cement  Company  of  California 
has  found :  10 

Since  selecting  our  risks,  viz.,  employing  only  men  who  are 
physically  sound,  .  .  .  not  only  a  great  reduction  in  the  manner  of 
accidents  but  .  .  .  also  a  greatly  increased  efficiency  in  our  working 
forces. 


WORKING   CONDITIONS  141 

Americanization  Classes.  —  The  problem  of  safety  has 
many  ramifications.  No  single  remedy  will  accomplish  the 
desired  immunity  from  accidents.  The  elements  which 
contribute  to  such  immunity  often  seem  remote  and  intan- 
gible. Required  attendance  on  company  time  at  Americani- 
zation classes,  for  instance,  is  prerequisite  to  the  safety 
movement  in  an  industry  employing  a  considerable  number 
of  foreign-born  workers.  With  the  Ford  Motor  Company 
accidents  decreased  54  per  cent  after  classes  in  English  were 
started.11 

Eliminating  Child  Labor.  —  Children  and  young  people 
help  to  swell  the  accident  list.  In  eight  munitions  factories 
in  England  the  accident  rate  among  the  boys  (those  under 
18  years  of  age)  exceeded  that  among  the  men  over  41 
by  50  per  cent.12  In  the  southern  cotton  mills  where  the 
younger  workers  are  employed  in  relatively  non-hazardous 
occupations,  the  accident  rate  for  children  is  more  than 
double  that  of  the  employes  over  16  years  of  age.13 

Decreasing  Turnover.  —  The  Westinghouse  Electric  and 
Manufacturing  Company  of  Pittsburgh  found  that  76  per 
cent  of  their  accidents  prior  to  1918  were  caused  by  em- 
ployes who  had  been  with  them  less  than  one  year.14  This 
indicates  the  close  relation  between  accidents  and  labor 
turnover,  and  the  value  in  accident  prevention  of  adminis- 
tration, which  tends  to  stabilize  the  working  force.  It 
shows  clearly  the  need  of  instructing  the  new  worker  and  of 
teaching  him  the  hazards  of  his  occupation. 

Every  plant  will  have  its  individual  accident  problems 
dependent  on  the  nature  of  the  work,  the  conditions  of  work 
and  the  character  of  its  workers.  The  means  of  meeting  t  hese 
problems  adequately  can  be  discovered  only  by  carefully 
compiled  accident  statistics.  The  proportion  of  accidents 
which  are  due  indirectly  to  poor  physical  condition,  over- 
work, inadequate  wages  with  the  concomitant  indifference 
and  lowered  vitality  of  the  workers,  or  directly  to  ill-guarded 


142  THE    HUMAN   FACTOR   IN   INDUSTRY 

machinery  or  inability  to  understand  English,  may  be  re- 
vealed in  these  statistical  analyses. 

^Prevention  of  Occupational  Disease 

Prevalence  of  Industrial  Health  Hazards.  —  Nowhere 
has  there  been  sufficient  appreciation  of  the  extent  and 
variety  of  occupational  disease.  Dr.  Hayhurst,  after  an 
extensive  study,  states  that  "  from  one  fourth  to  one  third 
of  the  medical  afflictions  of  trades  persons  are  due  in  the 
whole  or  in  great  part,  to  industrial  health  hazards."  *  15 

Processes  Grouped  according  to  Hazards.  —  In  his 
study  of  Ohio  industries  Dr.  Hayhurst  classifies  the  haz- 
ardous industries  as : 15 

(1)  Those  using  poisons  as  a  chief  hazard. 

(2)  Dusty  industries. 

(3)  Those  in  which  fatigue  and  inactivity  are  the  chief  hazards. 

(4)  Those  in  which  heat,  cold,  moisture,  or  dampness  predomi- 
nate. \ 

(5)  Those  in  which  there  is  more  than  usual  liability  to  con- 
tracting communicable  diseases. 

(6)  Industries  having  miscellaneous  hazards  tiot  included 
above. 

Of  these  the  largest  class  is  probably  the  dusty  industries. 
It  has  been  estimated  that  approximately  5,600,000,  or  17  per 
cent  of  American  wage  earners  of  both  sexes,  work  under  con- 
ditions more  or  less  injurious  to  health  because  of  atmos- 
pheric impurities  caused  by  dust,  fumes,  or  gases.  Professor 
Winslow  has  listed  some  54- trades  in  which  fine  particles 
of  bone,   hair,  metal,  and  mineral  or  vegetable  materials 

*  The  study  summarizes  (1)  United  States  Census  Mortality  Statistics 
of  Occupations ;  (2)  65,000  dispensary  records  and  many  hundreds  of  cases 
personally  seen  during  a  two-year  period  at  Rush  Medical  College  (Central 
Free  Dispensary) ;  and  (3)  the  medical  portion  of  27,887  cases  in  which 
the  patient  received  treatment  in  Cook  County  Hospital  during  the  year 
1913. 


WORKING   CONDITIONS  143 

form  a  dust  which  it  is  more  or  less  dangerous  to  breathe.16 
This  by  no  means  covers  all  the  industries,  processes,  and 
occupations  which  give  rise  to  dust;  almost  every  manu- 
facturing process  may  expose  workers  to  this  hazard  unless 
precautions  are  taken. 

Preventive  Measures.  —  A  large  amount  of  the  unneces- 
sary sicknesses  and  premature  deaths  may  be  prevented  with 
comparatively  little  effort  or  cost  on  the  part  of  the  em- 
ployer.    Many  occupational  diseases  may  be  prevented  by : 

(1)  Securing  tfie  scientific  ventilation  of  workrooms,  especially 
by  the  installation  of  efficient  local  exhausts  which  remove  dust  at 
points  of  generation.  In  some  industries,  such  as  in  smelting  and 
refining,  fountain-pen-point  manufacturing,  jewelry,  etc.,  the  dust 
created  fs  valuable,  and  it  has  been  found  profitable  t«  recover  the 
valuable  .material  from  the  collected  dust  by  means  of  a  patented 
electrical  precipitation  process. 

(2)  Securing  cleanliness  by  providing  ample  washing  or  bath- 
ing facilities.  Some  plants  provide  separate  lockers  for  street  cloth- 
ing and  wdrking  clothing,  so  arranged  that  the  worker  must  remove 
his  working  clothes,  hang  them  up  to  dry  or  place  them  in  the 
lockers,  and  must  then  pass  through  the  shower  room  before  he  can 
get  to  his  locker  containing  street  clothing. 

(3)  Wearing  of  proper  protective  clothing,  viz.,  respirators  and 
goggles  in  dusty  processes  which  cannot  l>e  taken  care  of  by  exhaust 
ventilation,  as  in  sand-blasting  and  emery-wheel  grinding;  boots 
and  gloves  in  wet  and  chemical  processes  ;  special  shoes  for  foundry 
workers;  helmets  Jbr  welders  ;  water-cooled  furnace  doors  for  hot- 
process  workers;    overalls,  aprons,  caps,  etc. 

(4)  Shortening  the  working  hours  (and,  therefore,  the  period 
of  exposure),  allowing  rest  or  "spell''  periods  in  fatiguing  and  ex- 
hausting work. 

(5)  Requiring  physical  examinations  at  entrance,  to  weed  out 
those  unfit  for  work  and  to  place  others  where  theyare  besl  suited 
physically;  and  periodically  to  ascertain  whether  workers  are 
suffering  from  the  effects  of  their  occupations  so  thai  changes  may 
be  made  and  treatment  or  necessary  advice  given. 

(6)  Providing  medical  care,  including  first  aid  and  necessary 
subsequent  treatment. 

(7)  Giving  health  instruction  and  safety  education. 


144  THE   HUMAN   FACTOR   IN   INDUSTRY 

(8)  Proper  layout  of  plant  and  good  housekeeping  so  that 
workers  in  one  process  are  not  unnecessarily  exposed  to  the  hazards 
of  another  adjacent  process. 

(9)  Sanitation  of  plant  to  prevent  the  spreading  of  communi- 
cable diseases.  This  includes  adequate  and  proper  toilet  facilities, 
sanitary  bubbling  fountains,  individual  towels,  spittoons,  etc. 

Noticeable  Effect  of  Cleanliness.  —  Of  these  methods 
of  prevention,  personal  cleanliness  is  of  great  importance. 
Assuming  that  the  chief  hazards  of  the  lead  industries  — 
dust  and  fumes  —  are  eliminated,  lead  poisoning  will  still 
occur  unless  these  workers  are  taught  the  value  of  washing 
(especially  before  eating)  their  hands  with  soap  and  hot 
water,  cleaning  their  finger  nails,  brushing  their  teeth,  and 
rinsing  their  mouths,  eating  lunch  outside  of  workrooms, 
and  wearing  working  clothing.  The  Sherwin-Williams 
Paint  Company  of  Cleveland  requires  its  men  in  the  dry- 
color  department  to  take  daily  shower  baths  and  provides 
clean  underwear  daily.  Before  making  these  provisions 
and  rules,  20  per  cent  of  the  force  were  ill,  and  six  weeks 
was  the  average  term  of  service  in  the  department.  Now 
the  personnel  of  this  department  is  nearly  permanent,  and 
there  is  practically  no  illness  from  lead  poisoning.17  It  is 
nothing  unusual  to  see  workers  in  the  lead  industries,  es- 
pecially painters,  eating  food  and  using  tobacco  on  the  sur- 
face of  which  has  been  smeared  lead  in  some  form  or  other, 
in  that  way  poisoning  themselves.  Plumbism  was  elimi- 
nated in  the  Pullman  car  shop  by  ringing  a  bell  ten  minutes 
before  the  noon  hour  and  requiring  all  employes  to  wash 
and  scrub  their  hands  with  nail  brushes  which  were 
kept  chained  to  the  wash  stands.  In  one  year  this 
"  wash-up  "  system  reduced  plumbism  from  77  cases  in  1911 
to  none  in  1912.18 

Sex  and  Age  Predisposing  Factors.  —  Future  study  may 
reveal  more  decisively  the  extent  to  which  age  and  sex  are 
predisposing  factors  in  the  various  industrial  diseases.     In 


WORKING    CONDITIONS  145 

certain  European  countries,  boys  and  women  are  not  al- 
lowed to  work  in  the  lead  trades  because  of  their  greater 
susceptibility  to  lead  poisoning,  nor  in  certain  trades  in- 
volving exposure  to  poisons  and  other  hazards. 

Women  in  industries  seem  more  susceptible  to  pulmonary 
tuberculosis  in  the  early  ages.  A  comparison  of  textile 
mill  workers  shows  that  in  the  age  period  15  to  24,  pulmonary 
tuberculosis  accounted  for  36.8  per  cent  of  all  causes  of 
death  among  males  and  50.2  per  cent  among  females.19 
It  is  possible  that  this  may  also  be  true  as  regards  other 
diseases.  Women  will  probably  always  require  protection 
in  special  health-hazardous  industries. 

Attention  of  Employers  Drawn  to  Occupational  Disease 
by  Legislation. — The  preventives  and  remedies  for  spe- 
cific industrial  diseases  and  occupational  poisonings  arc  too 
varied  to  permit  of  enumeration  here.  Their  study  is, 
however,  as  incumbent  upon  the  employer,  both  in  justice  to 
the  employe  and  in  the  interests  of  efficiency,  as  the  study 
of  accident  prevention.  This  fact  is  already  being  forcibly 
drawn  to  the  attention  of  some  employers  by  legislation. 
In  France,  Germany,  Austria,  Great  Britain,  and  Russia 
any  one  suffering  from  lung,  kidney,  or  stomach  trouble, 
addicted  to  alcoholism,  or  subnormal  physically  is  pro- 
hibited from  employment  in  the  lead  trades.  Workers  in 
those  trades  are  examined  periodically  by  physicians  in  most 
European  countries.  In  France  this  is  also  true  of  com- 
pressed-air workers  and  in  Holland  of  stonemasons.  In 
Austria  workers  with  open  wounds,  tubercular  tendencies, 
or  delicate  respiratory  organs  are  barred  from  the  paper 
mills.  In  this  country  monthly  examinations  are  required 
in  the  lead  trades  in  only  a  few  Stales,  and  in  New  Jersey 
and  New  York  compressed-air  workers  must  be  examined 
on  entrance  and  those  addicted  to  alcohol  excluded.'-0  Phos- 
phorous poisoning  has  been  eliminated  in  the  I  nited  States, 
as  in  foreign  countries,  by  adequate  legislation. 


146  THE   HUMAN   FACTOR   IN   INDUSTRY 

Compensation  for  illness  directly  traceable  to  industry 
is  also  a  question  of  the  immediate  future.  In  two  States, 
California  and  Massachusetts,  an  employer  is  held  liable 
by  law  for  compensation  when  a  disease  arising  out  of  the 
occupation  is  contracted  by  one  in  his  employ.  But  pro- 
gressive employers  do  not  need  such  a  legislative  reminder 
of  the  wasteful  extravagance  of  ignoring  conditions  of  work 
which  expose  their  employes  to  extra  disease  hazards. 

Sanitation 

Sanitary  working  conditions  are  the  employer's  first  bul- 
wark against  ill  health  and  lost  time  in  his  working  force. 
It  is  difficult  to  establish  standards  for  sanitary  equipment 
which  are  adaptable  to  the  different  kinds  of  industries  and 
buildings.  Scientific  study  in  each  plant  by  engineers  can 
alone  determine  the  number  and  variety  of  lavatories, 
toilets,  dressing  rooms,  and  baths  which  are  needed.  Some 
of  the  following  studies  may  be  helpful,  however. 

Sanitary  Standards.  —  In  1916  a  committee  of  the  De- 
troit Executives'  Club,  consisting  of  two  sanitary  engineers, 
one  doctor,  two  safety  engineers,  and  four  welfare  men, 
all  from  large  Detroit  plants,  studied  the  equipment  of  model 
factories,  and  with  the  assistance  of  suggestions  from  manu- 
facturers of  sanitary  plumbing,  recommended  the  following 
standards  for  the  sanitary  equipment  of  factories.21 

In  addition  the  Committee  stated  : 

The  objection  to  paper  towels,  "that  we  do  not  get  our  hands 
dry  enough  to  prevent  chapping,"  can  be  done  away  with  by  a  well 
ventilated,  warm  dressing  room,  where  the  hands  dry  while  dressing. 

Where  there  are  corners  into  which  waste  papers  and  refuse  are 
thrown,  this  can  be  largely  eliminated  by  painting  these  corners 
white  and  lighting  them  well.  One  does  not  throw  waste  into  clean 
corners. 

Tile  floors  should  be  laid  in  all  washrooms,  etc.,  where  possible, 
otherwise  cement,  well  drained.      Oily  floors  should   be   scraped 


WORKIXO    CONDITIONS 


147 


Lavatories 

Toilets 

Dkinki.su 

1  '.1   STAINS 

Lockers 

Type .     . 

Individual 

All     porcelain, 

Bubble  type 

Perforated 

no  wood 

arranged 
so  lips  do 
not  touch 
metal 

metal  slant- 
ing      top 
to     prevent 
accumula- 
tion of  refuse 

Located . 

In  central 

Substations 

Where  con- 

In   central 

b  uildi  ng 

near  workers 

venient  to 

building 

near  lockers 

workers 

Number. 

1  to  15  men 

1  to  20  men 

1  to  30  men 

1  per  man. 
If      possible 
one     com- 
partment for 
work    and 
one  for  shop 
eli  »t  lies 

Accesso- 

Hot and  cold 

Automatic 

Locked. 

ries 

water,    liq- 
uid    soap, 
paper  tow- 
els 

flush 

Forced    hot 
air    ventila- 
tion   to   dry 
gar- 

Plumbing 

Open     type, 
plain 

ments 

Special 

Porcelain 

Must    have   a 

In    clean 

It     is    ad- 

features 

forced     air 
ventilation 

light  plaits 

visable  to  ar- 
range lockers 
bo  that  men 
ooming     off 
work  at  the 
same      time 
have    every 
second    or 
third  Looker 
to     prevent 
crowding 

Note .     . 

Average  time 

Compartments 

1 f    lockers 

per  man  a1 

should    not 

are      near 

wasli  basin 

have     doors, 

wash   basins 

22  minutes 

easier  to  keep 
clean 

a  Larger  num- 
ber can  use 

without  wait- 
ing 

148  THE    HUMAN   FACTOR   IN   INDUSTRY 

and  swept  daily.  Where  cement  floors  are  used,  rubber  pads  for 
the  men  to  stand  on  will  help  in  increasing  comfort  and  efficiency. 
Where  cuspidors  are  needed,  they  should  be  placed  on  paper  mats 
twenty  inches  in  diameter  and  changed  daily.  Paper-lined  cuspidors 
are  recommended. 

In  especially  dusty  trades  or  wherever  poisonous  ma- 
terials are  used,  as  in  munitions  factories  and  lead  trades, 
a  larger  proportion  of  lavatories  will  be  necessary.  The 
British  Health  of  Munitions  Workers  Committee  recom- 
mended one  basin  for  every  five  persons.22 

Importance  of  Cleanliness.  —  In  general  the  benefit  of 
providing  adequate  washing  facilities  lies  (1)  in  the  bene- 
ficial effect  which  cleanliness  has  on  the  health  of  the  workers, 
whether  or  not  poisonous  substances  are  used,  (2)  in  the  in- 
creased self-respect  of  the  workers,  (3)  in  making  it  possible 
for  the  workers  to  leave  the  place  of  employment  decently 
clean  and  ready  for  social  intercourse  or  amusement  without 
having  to  go  home  first. 

Necessity  for  Baths.  —  Provision  for  baths  in  factories 
is  usually  urged, 

(1)  Where  the  worker  is  exposed  to  great  heat,  excessive  dust, 
or  contact  with  poisonous  materials. 

(2)  Where  food  products  are  handled  (to  protect  the  public). 

(3)  And  where  there  are  not  adequate  bathing  facilities  in  the 
workers'  homes  (raise  the  standard  of  health  and  efficiency  for  the 
benefit  of  both  worker  and  employer). 

This  last  reason  for  providing  baths  is  a  questionable  one. 
Were  the  employes'  wages  sufficient  to  pay  higher  rents, 
their  homes  might  not  lack  bath  tubs.  It  may  be  justi- 
fiable, however,  in  addition  to  good  wages,  to  promote  edu- 
cation in  personal  hygiene  by  offering  bathing  facilities  at 
the  company's  expense  both  as  to  time  and  service,  or  by 
charging  a  nominal  fee  of  a  few  cents  per  bath.  Com- 
pulsion attached  to  the  use  of  factory  baths  is  permissible 
and  advisable  only  where  the  worker  must  be  protected  from 


WORKING   CONDITIONS  149 

occupational  poisoning  or  the  public  from  impurities  in  goods, 
due  to  a  lack  of  cleanliness  in  their  preparation. 

Standard  Bath.  —  The  standard  bath  is  a  shower.  This 
is  more  cleansing  and  more  stimulating  than  the  still  bath, 
and  easier  to  keep  clean.  The  overhead  shower  bath  is  practi- 
cal for  men,  but  for  women  the  spray  should  be  projected 
at  the  level  of  the  shoulders  to  prevent  wetting  the  hair. 
Swimming  pools  when  provided  are  considered  as  part  of 
the  recreational  rather  than  the  sanitary  equipment  and  a 
shower  bath  is  usually  made  a  prerequisite  to  entering  the 
pool. 

Drinking  Water.  —  Every  effort  should  be  made  to  pro- 
vide a  pure,  cool  and  plentiful  supply  of  drinking  water 
conveniently  located  for  the  workers.  Dr.  Darlington  pre- 
scribes seven  glasses  of  water  daily  for  the  maintenance  of  a 
normally  healthy  condition,  an  amount  far  in  excess  of  that 
now  taken  by  the  average  person.  Drinking  sufficient  water 
results  in  an  improved  digestion  and  better  assimilation  of 
food,  an  equable  bodily  temperature,  a  lessened  thirst,  which 
in  turn  reduces  the  desire  for  alcoholic  beverages,  and  in 
lessened  fatigue  because  it  enables  the  more  speedy  removal 
of  the  poisonous  wastes  which  are  produced  in  the  system 
with  the  expenditures  of  energy.23 

Few  investments  will  pay  larger  dividends  than  money 
spent  in  installing  and  running  an  adequate  drinking-water 
system.  The  important  points  in  such  an  undertaking  are 
that : 

(1)  The  quantity  of  water  to  be  supplied  must  be  determined. 
This  depends  upon  the  nature  of  the  work,  the  season  of  the  year 
and  whether  drinking  cups  or  bubbling  fountains  are  to  be  used. 
The  steel  mills  allow  1  quart  per  hour  to  a  person,  including  waste 
from  the  cups.  The  demand  for  water  in  t hi-  case  is  unusual. 
Ordinarily,  if  a  Fountain  is  used,  from  2  to  3  quarts  per  workman 
every  8  hours  is  sufficient. 

(2)  The  supply  must  be  wholesome  and  its  source  should  be 
carefully   considered.     If   possible   it   should    be   drawn   from    an 


150  THE   HUMAN   FACTOR   IN   INDUSTRY 

approved  city  water  supply.  If  the  plant  has  its  own  system,  fre- 
quent chemical  and  bacteriological  analyses  should  be  made.  If 
not  suitable  for  drinking  purposes,  the  water  must  be  purified  by 
sterilization  or  filtration. 

(3)  The  water  should  be  kept  at  a  temperature  between  45 
degrees  and  50  degrees.  It  is  customary  to  cool  to  a  lower  tem- 
perature and  allow  a  rise  of  4  degrees  or  5  degrees  in  passing  through 
the  circuit,  with  an  average  temperature  of  47  degrees  in  the  system. 
The  refrigerator  equipment  is  usually  a  small  refrigerating  plant 
and  a  water  cooler.  The  latter  consists  simply  of  a  storage  tank 
containing  a  pipe  coil  in  which  liquid  ammonia  is  allowed  to  vaporize. 
Coolers  employing  ice  are  not  generally  used  except  in  plants  of 
comparatively  small  size.  If  the  ice  comes  in  contact  with  the 
water  there  is  danger  of  contamination.  In  piping  the  water 
through  the  building  a  circulating  pump  is  necessary  except  in  very 
tall  buildings,  where  the  cooling  tank  is  placed  at  a  high  elevation. 
By  these  methods,  fresh,  cold,  and  pure  water  is  brought  within  the 
easy  reach  of  every  employe  in  the  plant  and  adds  greatly  to  his 
health  and  comfort,  besides  contributing  to  the  efficiency  of  the 
factory.  * 24 

In  most  factories  the  worker  must  go  for  the  water  him- 
self to  some  central  supply.  The  German-American  Button 
Company  of  Rochester  finds  that  "it  is  cheaper  for  a  seven- 
dollar  boy  to  take  water  to  a  twenty-dollar  man  than  it  is 
for  the  man  to  go  for  the  water  himself."  Moreover,  having 
to  go  after  a  drink  means  usually  no  drink  at  all,  and  the 
necessary  seven  glasses  a  day  are  seldom  taken,  so  that  the 
worker's  efficiency  is  consequently  not  maintained. 

The  system  adopted  by  this  company  is  as  follows :  Six 
times  a  day  water  is  served  by  carriers  to  every  employe  in 
large,  individual,  metal-plated  cups  which  are  carried  on 
trucks  with  trays  holding  48  cups.  The  cups  are  sterilized 
in  boiling  water  after  each  service  and  inspected  daily. 
Special  apparatus  is  provided  whereby  24  cups  are  filled 
at  once  without  waste. 

*  For  further  scientific  details  in  regard  to  the  establishment  of  a  drink- 
ing-water system  see  article  by  Charles  L.  Hubbard,  "Factory  Water  Supply," 
in  Factory  Magazine,  May,  1919. 


WORKING   CONDITIONS  151 

Dressing  Rooms  and  Lockers.  —  Proper  provision  should 
always  be  made  for  hanging  clothing  in  a  clean,  dry  place, 
where  the  danger  of  theft  is  reduced  to  a  minimum.  Even 
when  the  workers  are  not  required  to  wear  uniforms  in  the 
factory,  the  growing  and  highly  desirable  tendency  among 
factory  operatives  to  change  their  clothing  for  work  makes 
dressing  rooms  necessary.  As  much  privacy  as  possible 
should  be  afforded  the  individual  while  changing  clothes. 
and  the  dressing  rooms  must  be  large  enough  to  prevent 
crowding  and  to  expedite  the  changes. 

Individual  lockers  should  be  supplied,  although  the  work 
may  not  require  a  change  of  cloth  inn;.  All  lockers  should 
be  ventilated  either  by  perforations  in  top  and  bottom,  or, 
ideally,  by  a  mechanical  exhaust  system  for  each  row  of 
lockers,  which  forces  the  air  through  the  perforations.2' 
Lockers  of  the  mesh-wire  type  are  acceptable  only  to  the 
lowest  class  of  workers.  Lockers  and  dressing  rooms  become 
comparatively  less  important  in  the  more  cleanly  work, 
however,  and  a  row  of  pegs,  amply  spaced,  may  serve  the 
purpose.  Still  another  variation  in  the  method  of  taking 
care  of  employes'  clothing  has  been  introduced  in  one  of  our 
great  American  corporations.  Overhead  hangers  are  used, 
because  in  the  lockers  working  clothes  are  qoI  properly 
aired  and  dried.  Thus  an  employe  changing  his  wet  clothes 
at  the  end  of  a  shifl  always  has  dry  ones  to  put  on.  An- 
other device  which  combines  the  advantages  of  both  con- 
sists of  wire  boxes  or  receptacles  overhead,  to  which  the 
clothes  are  hoisted  by  ropes  and  pulleys.  The  wire  parti- 
tions keep  one  person's  clothing  from  touching  another, 
while  being  dried  by  the  warm  air  currenl  at  the  top  of  the 
room.  Theft  is  guarded  againsi  by  having  each  user  lock 
his  clothing  into  position.''' 

Uniforms.  —  Lockers  are  not  only  desirable  but  neces- 
sary in  factories  where  sheet  clothing  must  be  changed  to 
or  covered  by  uniforms  during  the  working  period.    Miners, 


152  THE    HUMAN   FACTOR   IN   INDUSTRY 

those  employed  in  the  building  trades,  painters,  and  men  in 
other  highly  hazardous  occupations  usually  wear  overalls 
or  blue  dungarees,  but  uniforms  for  women  are  more  rare. 
These  uniforms,  in  the  shape  of  aprons,  overalls,  and  bloomer 
dresses  with  caps,  are  gaining  in  popularity  for  the  follow- 
ing reasons : 

(1)  To  prevent  accidents  in  occupations  where  there  is  danger 
of  catching  clothing  in  machinery. 

(2)  To  prevent  occupational  diseases  where  poisonous  or  acid 
substances  are  used  in  the  process  of  manufacture. 

(3)  To  preserve  the  clothing  and  self-respect  of  the  worker  on 
leaving  the  factory  premises,  where  the  conditions  of  work  are 
necessarily  dusty  or  dirty. 

(4)  To  protect  the  consumer,  where  food  products  are  being 
handled. 

(5)  To  eliminate  dress  snobbery  among  the  women  workers. 

(6)  To  induce  esprit  de  corps  among  the  workers  in  a  plant. 

(7)  And  to  improve  the  general  appearance  of  the  working 
force. 

In  introducing  a  uniform  it  is  well  for  the  employer  to  con- 
sult the  taste  of  the  women  and  let  them  aid  in  its  selec- 
tion. The  uniforms  are  sometimes  provided  by  the  em- 
ployer gratis,  but  often,  as  in  the  case  of  the  Bourn ville 
Works  in  England,  either  the  material  for  the  uniforms  or 
the  complete  costume  is  paid  for  by  deductions  from  the 
wages  of  the  women.  Each  employe  is  supposed  to  have  two 
uniforms  on  hand,  to  enable  frequent  washing.  In  order  to 
make  the  wearing  of  these  uniforms  compulsory,  it  is  advis- 
able that  the  employer  provide  them,  when  they  are  needed. 

Lighting 

Effect  of  Lighting  on  Production.  —  Probably  nothing 
affects  the  output  of  the  worker  more  directly  than  does  the 
light  under  which  the  work  is  carried  on.  Electrical  engineers 
have  shown  that  the  rate  of  output  can  be  increased  2  per 


WORKING  CONDITIONS  153 

cent  in  steel  mills  and  10  per  cent  in  textile  mills  and  factories, 
by  improving  the  system  of  illumination.  The  night  output 
in  one  steel  plant  increased  10  per  cent  with  the  installation 
of  an  efficient  lighting  system.  To  make  sure  that  light- 
ing was  wholly  responsible  for  the  increase,  the  new  lamps 
were  taken  out,  and  under  the  old  system  output  dropped 
back  10  per  cent  and  returned  to  the  higher  rate  only  after 
the  new  lighting  system  was  restored.27 

Daylight  when  obtainable  is  the  best  form  of  lighting  for 
almost  all  kinds  of  work.  The  essentials  of  daylight  illumi- 
nation as  summarized  by  Dr.  Schereschewsky  are  that : 

(1)  The  amount  of  light  admitted  to  the  interior  should  be  as 
large  as  possible. 

(2)  The  light  should  reach  the  center  of  the  room. 

(3)  The  distribution  of  the  light  upon  the  working  planes  should 
be  as  uniform  as  possible. 

(4)  The  light  should  fall  upon  working  planes  from  a  proper 
direction. 

(5)  The  walls  and  trim  of  the  room  should  be  of  such  color  and 
surface  as  to  absorb  but  little  of  the  incident  light,  white  being  the 
preferable  color. 

(6)  Manufacturing  and  other  equipment  should  be  so  disposed 
as  to  avoid  casting  extensive  local  shadows.27 

Ratio  of  Floor  Area  to  Window  Area.  —  Roof  lighting  is 
preferable  to  lateral  lighting,  but  is  naturally  possible  only 
in  one-story  buildings  or  on  the  top  stories  of  others.  The 
minimum  ratio  of  floor  area  to  window  area  is  generally 
specified  as  4  or  5  to  1  for  factories,  and  7  or  10  to  1  for 
office  buildings.28  The  desirable  size  of  the  window  space 
varies  with  the  kind  of  work  to  be  done  and  the  amount  of 
direct  light  which  reaches  the  windows.  Too  much  daylight 
may  be  as  bad  as  too  little,  if  it  is  glaring  and  trying  to  the 
eyas  of  the  workers.  A  factory  in  the  manufacturing  district 
of  a  city  may  need  the  maximum  possible  proportion  of  wall 
space  devoted  to  windows,  whereas  a  factory  in  an  open  field 


154  THE   HUMAN   FACTOR   IN   INDUSTRY 

will  need  to  soften  the  light  in  the  workroom  by  decreasing 
this  proportion. 

Distribution  of  Light  by  Means  of  Special  Glass.  —  Where 
tall  buildings  shut  out  much  of  the  direct  light  from  the  sky, 
the  daylight  strikes  the  windows  at  an  oblique  angle,  and 
there  is  a  consequent  concentration  of  light  in  a  narrow  band 
near  the  windows  and  an  absence  of  it  in  the  center  of  the 
room.  Roughened,  ribbed,  or  prism  glass  in  the  window 
panes  in  such  a  case  deflects  the  oblique  light  rays  into  the 
center  of  the  room  and  equalizes  the  distribution  of  light. 
In  order  to  obviate  the  glare  of  direct  light,  work  tables  may 
be  arranged  at  right  angles  to  windows. 

Standards  of  Artificial  Illumination.  —  The  quality  of 
artificial  illumination  must  approach  as  nearly  as  possible 
to  that  of  sunlight.  The  color  of  the  tungsten-lamp  light  is 
very  much  like  that  of  sunlight  and  is  generally  recom- 
mended. In  large,  high-roofed  machine  plants  the  flaming 
arc  lamp  is  sometimes  necessary,  but  in  most  cases  where  the 
light  is  suspended  from  a  height  less  than  40  feet,  the  single 
or  clustered  tungsten  lamp  is  highly  efficient.  The  only 
exception  to  this  is  where  there  is  excessive  vibration  from 
machinery  which  breaks  the  more  delicate  tungsten  and 
requires  the  carbon  filament  lamp.  The  tungsten  lamp 
has  not  only  a  longer  life  than  the  best  carbon  filament  but 
is  at  least  100  per  cent  more  efficient  and  gives  a  light  of  a 
better  color  value. 

Positions  of  Light  and  Candle  Power  Recommended.  — 
For  safety  and  efficiency  the  Industrial  Commission  of  Wis- 
consin requires  artificial  illumination  in  factories  equivalent 
to  one  candle-power  lamp,  hung  ten  feet  from  the  floor,  for 
every  four  square  feet  of  floor  space.  This  makes  individual 
lights  unnecessary  except  for  some  kinds  of  fine  work.  The 
supply  and  quality  of  light  may  be  adequate,  but  the  good 
effect  entirely  neutralized,  by  failing  to  have  the  light  fall 
on  the  work  properly.     The  lights  should  be  placed  above 


WORKING    CONDITIONS  155 

the  heads  of  the  workers,  so  that  all  parts  of  the  room  are 
illuminated  and  so  that  at  no  time  do  they  shine  in  the  eyes  of 
the  workers,  even  when  standing  in  an  upright  position. 
Carefully  shaded  individual  lights  arc  usually  used  for  work 
such  as  drafting  or  fine  hand  or  machine  work,  but  where 
general  illumination  is  more  desirable  in  fine  machine  work 
a  standard  of  one  half  to  one  candle  power  per  square  floor 
foot  hung  ten  feet  from  the  floor  is  commonly  used. 

Reflectors. — Reflectors  are  indispensable  with  the  tungsten 
lamp,  which  throws  a  large  amount  of  its  light  horizontally. 
They  can  be  so  constructed  that  the  light  is  deflected  to  an 
area  somewhat  between  three  and  six  feet  from  the  floor,  and 
add  some  35  to  50  per  cent  to  the  efficiency  of  the  lamp. 

Comparatively  speaking,  however,  there  is  little  work 
done  by  artificial  light  and  the  great  need  in  many  factories 
is  for  adequate  lighting  during  the  daytime.  The  funda- 
mental problems  involved  are  the  same. 

Prevalence  of  Poor  Light.  —  Poor  lighting  means  in- 
efficiency and  lessened  production.  It  affects  output  ad- 
versely by  causing  (1)  unnecessary  accidents,  (2)  eyestrain, 
headaches,  and  malaise  in  the  workers,  (3)  a  lower  speed  in 
working,  and  (4)  increased  difficulty  in  supervision.  And 
yet  the  New  York  State  Factory  Commission  in  1912  found 
36.7  per  cent  of  the  laundries  investigated,  40.2  per  cent 
of  the  candy  factories,  50  per  cent  of  the  ice-cream  plants, 
and  64.8  per  cent  of  the  chemical  establishments  inade- 
quately lighted.'8  In  over  50  per  cent  of  15  workrooms  of 
the  garment  trades  in  New  York  City  in  L915,  illumination 
was  inadequate.  It  is  not  surprising,  therefore,  that  three 
quarters  of  2906  workers  in  the  garment  trades  examined 
in  one  year  had  defective  vision.28 

Since  poor  lighting  is  so  prevalent  and  proper  illumina- 
tion is  an  important  factor  in  the  efficiency  of  the  worker 
and  bears  so  directly  upon  the  rate  of  output,  it  deserves 
careful  consideration  and  detailed  study. 


156  THE   HUMAN   FACTOR   IN   INDUSTRY 

Ventilation 

Importance  of  Temperature,  Humidity,  and  Dust  Content 
of  the  Atmosphere.  —  Several  interesting  studies  have  been 
made  in  the  past  few  years  to  determine  the  effect  of  atmos- 
pheric conditions,  within  and  without  the  workshops,  on 
the  efficiency  and  health  of  the  workers.  It  has  been 
supposed  that  the  evils  of  poor  ventilation  were  due  chiefly 
to  the  carbon  dioxide  content  of  expired  air,  to  the  volatile 
substances  given  off  in  perspiration,  and  to  bacteria  carried 
by  the  air.  Now  it  is  known  that  the  chemical  condition 
of  the  atmosphere  has  comparatively  slight  effect  on  working 
capacity  and  bodily  condition,  and  that  the  air  does  not 
carry  bacteria  to  any  extent.  Quantities  of  carbon  dioxide 
given  off  in  a  manufacturing  process  or  other  gases  and 
fumes  may  be,  of  course,  extremely  injurious  to  the  worker, 
but  such  conditions  are  exceptional.  It  is  temperature, 
humidity  and  dust  content  which  usually  make  the  air  of  a 
workroom  good  or  bad  in  its  effect  on  the  worker. 

Seasonal  Variation  in  Output.  —  Professor  Huntington 
traced  the  daily  variation  in  output  of  workers  in  factories 
in  Connecticut  and  Pittsburgh  for  three  years  (1911-1914). 
Piecework  wages  were  found  to  vary  from  season  to  season, 
being  lowest  in  January  and  highest  in  early  June  and  Novem- 
ber. Thus  the  minimum  of  efficiency  came  in  the  cold  winter 
months  and  hot  summer  months,  while  maximum  efficiency 
seemed  to  be  obtained  when  the  outdoor  temperature  ranged 
from  60  degrees  to  65  degrees.29 

Effect  of  Temperature  on  Output.  —  Exhaustive  experi- 
ments have  been  carried  on  by  the  New  York  State  Commis- 
sion on  Ventilation.  Over  one  hundred  men  and  women  were 
kept  at  various  kinds  of  physical  or  mental  labor  for  a 
day  or  half  day  in  specially  constructed  rooms  in  which 
the  atmospheric  conditions  were  carefully  regulated.  The 
effect  of  hot  or  cold,  fresh  or  stale  air  on  their  efficiency  and 


WORKING    CONDITIONS  157 

bodily  condition  was  accurately  measured.  The  heavy 
physical  labor  of  lifting  dumb-bells  or  riding  a  stationary  bi- 
cycle was  performed  15  per  cent  more  efficiently  at  68  degrees 
than  at  75  degrees,  and  37  per  cent  more  than  at  86  degrees.* 
In  typewriting,  which  combines  mental  and  physical  effort 
to  an  extent  typical  of  most  office  work,  6.3  per  cent  more 
work  was  done  at  68  degrees  than  at  75  degrees.  In  the 
purely  mental  work  of  arithmetic  comparative  efficiency 
was  maintained  at  a  temperature  as  high  as  75  degrees,  but 
in  every  other  case  68  degrees  produced  maximum  efficiency 
and  was  always  the  most  comfortable  to  the  workers.  Stale 
or  fresh  air  made  little  difference  in  the  condition  of  the 
workers,  except  that  their  appetite  slightly  decreased  as  the 
proportion  of  carbon  dioxide  and  organic  substances  in  the 
air  increased.29 

Standards  for  Temperature  and  Humidity.  —  The  de- 
sirable temperature  will  vary  from  60  degrees  to  65  degrees 
for  work  involving  much  physical  exertion  to  between  68 
degrees  and  70  degrees  for  other  work.17  Thompson  found 
that  the  most  desirable  relative  humidity  of  the  workroom  is 
55  to  65  per  cent,  with  the  air  changed  three  times  an  hour.30 

Ventilating  System.  —  The  ventilating  and  heating  system 
required  will  differ  with  each  work  place.  In  the  ordinary 
workroom,  where  the  window  space  is  sufficient,  1800  cubic 
feet  of  fresh-air  space  per  hour  per  person  can  be  secured  in 
winter  and  summer  by  opening  the  windows  top  and  bottom 
and  inserting  a  draft  deflector  at  the  bottom.  Another 
excellent  method  of  window  ventilation  is  to  admit  fresh 
air  over  window  boards  with  ample  radiation  under  the 
windows,  while  a  gravity  exhaust  is  provided  for  the  re- 
moval of  vitiated  air.  In  addition  to  this  window  ventila- 
tion the  British  Committee  recommend  for  one-story  build- 
ings narrow  openings  or  louvers  where  the  roof  meets  the 
wall.30  Electric  fans  and  "  natural  draft  "  ventilators  are 
*  Fahrenheit  scale  used  throughout. 


158  THE    HUMAN   FACTOR   IN    INDUSTRY 

commonly  used.  The  latter  consists  simply  in  a  "  coil  so 
shaped  that  the  air  currents  blowing  around  and  over  it 
will  generate  a  suction  in  the  pipe  leading  from  the  work- 
room." 25  Window  ventilation  is  only  sufficient  where  some 
one  person  is  appointed  and  authorized  to  regulate  it, 
otherwise  some  sensitive  person  will  manage  to  close  near- 
by windows.  In  the  Metropolitan  Life  Insurance  Com- 
pany, windows  are  daily  thrown  wide  open  in  every  depart- 
ment during  rest  periods,  when  the  employes  are  moving 
about  and  less  susceptible  to  drafts.  The  real  question  is 
not  how  much  air  enters  or  leaves  the  room  or  how  much 
oxygen  it  contains,  but  what  its  temperature  is.  It  is  there- 
fore necessary  to  install  thermometers  so  that  the  person  in 
charge  may  open  the  windows  when  the  temperature  ex- 
ceeds 68  degrees.  A  specially  devised  system  of  hoods, 
exhausts,  and  flues  is  of  course  essential  where  smoke,  dust, 
or  heated  fumes  are  given  off  in  the  process  of  manufacture.* 

Heating  System.  —  The  natural  and  healthy  method  of 
heating  any  room  is  obtained  by  radiation  from  stoves,  but 
in  factories  this  is  impossible,  and  a  "  plenum  system," 
combining  "  indirect  radiation  and  mechanical  ventilation," 
may  be  provided  by  an  apparatus  through  which  fresh  air 
is  blown  into  the  room  rapidly  by  fans  over  the  heating  or 
cooling  coil,  Avith  a  chamber  of  water  sprays  to  regulate 
humidity,  and  passes  out  of  the  room  through  special  pipes.17 
In  heating  the  work  place  any  system  of  pumping  in  hot 
air  which  does  not  include  apparatus  for  regulating  humidity 
has  been  condemned  because  it  produces  a  dry,  monotonous 
and  depressing  atmosphere. 

Prevalence  of  Bad  Conditions.  —  Needless  to  say  such 
conditions  —  68  degrees  temperature,  with  not  more  than 
65  relative  humidity  —  are  rarely  obtained  in  factory  rooms. 

*  For  dimensions  and  kind  of  exhaust  system  needed  in  dust  removal 
see  article  by  John  Roach,  Hygienic  and  Sanitary  Equipment,  Ind.  Man, 
Oct.,  1917. 


WORKING   CONDITIONS  159 

Of  215  workrooms  in  New  York  State  recently  investigated, 
nearly  one  third  had  a  temperature  of  80  degrees  or  over  and 
three  fourths  of  73  degrees  or  over.20  In  forty-two  laundries 
visited  in  1917  by  officers  of  the  New  York  City  Health 
Department,  the  temperature  of  the  wash  rooms  ranged 
from  83  degrees  F.  to  96  degrees.  Twenty-six  of  thirty-six 
mangle  departments  gave  a  temperature  of  over  86  degrees.31 
Such  extreme  temperatures  as  these  are  not  peculiar  to 
laundries. 

It  is  obvious  that  ventilation  is  an  important  factor  in 
labor  maintenance,  but  that  no  one  set  of  rules  can  be  recom- 
mended for  the  ventilation  of  all  work  places  for  all  kinds  of 
work.  The  general  principles  upon  which  workroom  venti- 
lation should  be  based  are  briefly  summarized  by  the  British 
Committee.32    The  atmosphere  should  be: 

(a)  Cool  rather  than  hot. 

(b)  Dry  rather  than  damp. 

(c)  Diverse  in  its  temperature  in  different  parts  and  at  dif- 
ferent times,  rather  than  uniform  and  monotonous  and  (which  is 
ultimately  connected  with  this  diversity) 

(d)  Moving  rather  than  still. 

Fire  Protection 

The  Need  for  Fire  Prevention.  —  The  task  of  fire  pre- 
vention which  lies  before  the  American  people  and  manu- 
facturers is  evident  when  we  compare  the  per  capita  annual 
loss  by  fire  in  France,  Germany,  Austria,  or  Italy,  which  was 
less  than  $.50  even  eighteen  years  ago,  with  that  in  the 
United  States,  which  was  S3. 02  during  the  five-year  period 
preceding  1907. 18  The  fire  losses  in  New  York  City  are 
4-2-  times  as  great  as  in  London.  In  1917  the  total  loss  from 
fire  in  the  United  Stales  was  $267,560,740.w 

Building  Construction  the  First  Problem.  —  A  model 
factory  from  the  standpoint  of  fireproof  construction  is  the 
Bournville   Works   in    England,    which   covers  some   thirty- 


160  THE    HUMAN    FACTOR   IN    INDUSTRY 

three  acres  of  land  and  consists  of  numerous  workrooms,  ware- 
houses and  offices.  The  stock  room,  in  which  large  quantities 
of  sugar,  flour,  cocoa,  timber,  paper,  oil,  petrol,  etc.,  are  stored,  is 
in  an  isolated  building  made  of  brick,  steel,  and  ferro-concrete. 
Each  section  of  the  building,  each  elevator  shaft  and  stairway, 
is  an  isolated  fireproof  unit.  The  power  gas  plant  and 
electric  generating  station  are  likewise  isolated.  In  the 
factory  buildings,  floors  are  of  ferro-concrete  supported  by 
ferro-concrete  incased  stanchions.  No  inflammable  wood 
is  used  in  the  newer  buildings  and  steel  principals  support 
the  roof.  Fireproof  doors  separate  each  department  and 
close  each  window,  while  the  connecting  bridges  and  pas- 
sages between  departments  are  constructed  of  iron  or  ferro- 
concrete. 

Such  elaborate  construction  is  not  feasible  in  smaller 
factories,  however,  and  instead  of  the  reinforced  concrete 
building,  it  may  be  necessary  to  use  the  standard  mill  con- 
struction building,  consisting  of  massive  timber  which  can 
be  charred  but  not  easily  burnt.  Such  a  building  costs  only 
25  per  cent  more  than  the  inflammable  frame  building  and  is 
therefore  rapidly  displacing  the  latter.  In  all  factories,  in 
addition  to  the  provision  of  adequate  exits  and  stairways, 
each  floor  should  be  an  isolated  fire  unit,  all  interior  openings 
to  elevators,  stairways  or  air  shafts  should  be  protected  by 
fireproof  doors  or  shutters,  and  the  fire  escapes  should  not 
pass  openings  through  which  flames  can  issue  directly  from 
any  floor.17 

Other  Precautions.  —  Although  the  buildings  may  be  of 
the  most  approved  fireproof  constructions,  danger  still  re- 
mains if  easily  fired  dust  is  allowed  to  accumulate  or  if 
inflammable  waste  material  is  left  exposed  to  the  air. 
Mechanical  dust  collectors  are  needed  in  the  more  dusty 
departments,  and  men  should  sweep  out  the  rooms  and 
passages  daily. 

During  each  holiday  the  beams,  girders,  and  machinery  in 


WORKING  CONDITIONS  161 

factories  should  be  cleaned.  Iron  boxes  with  air-tight  lids 
should  be  provided  for  oily  rags,  and  in  each  room  receptacles 
for  rubbish  should  be  supplied.  In  many  factories  smoking 
is  wisely  prohibited  except  in  special  smoking-rooms,  at  meal- 
times, and  only  safety  matches  provided  by  the  firm  are 
used  on  the  plant  premises. 

Fire  Alarms.  —  In  spite  of  every  precaution  fires  will 
occur.  It  has  been  estimated  that  80  per  cent  of  the 
fires  in  the  United  States  are  due  to  carelessness,33  and  this 
estimate,  which  is  certainly  not  unduly  exaggerated,  indicates 
the  importance  of  enabling  the  speedy  discovery  and  extinc- 
tion of  unavoidable  fires.  A  watchman  on  constant  duty 
should  be  checked  in  his  rounds  by  recording  clocks  at 
various  stations  in  the  factory.  In  the  more  dangerous 
places,  where  inflammable  materials  are  stored  or  where 
fires  may  easily  originate,  thermostatic  fire  alarms  should  be 
installed,  in  which  an  electric  current  starting  the  alarm  is 
automatically  produced  whenever  any  part  becomes  over- 
heated. In  every  factory  some  system  of  fire  alarm-  is 
essential. 

Fire  Extinguishing  Apparatus.  —  Fire  pails  should  be 
adequate  in  number  and  kept  full  of  water.  Hose  boxes 
must  be  freely  distributed  and  sufficient  water  pressure 
assured.  Sawdust  or  sand  boxes  should  be  placed  where 
oils  are  stored,  and  chemical  fire  extinguishers  established  at 
frequent  intervals.  Pressure  from  insurance  underwriters 
has  resulted  in  the  general  installation  in  large  factories 
of  the  automatic  fire  sprinkler,  a  system  of  overhead  pipes 
from  which  streams  of  water  are  projected  when  the  fusible 
metal  which  closes  the  openings  is  melted  by  a  heat  of  about 
1G0  degrees  F.18  Large  plants,  such  as  the  Bournville  Works, 
are  sometimes  equipped  with  their  own  Ore-engines,  hose 
carts,  smoke  helmets  and  trained  fire  brigades. 

Fire  Drills.  —  Confusion  resulting  in  panics  is  the  chief 
cause  of  fire  accidents.     For  this  reason  fire  drills  should  be 


162  THE   HUMAN   FACTOR   IN   INDUSTRY 

insisted  upon,  weekly  or  bi-weekly,  on  different  days,  without 
any  previous  notice.  For  plants  operating  the  full  twenty-four 
hours,  fire  drills  for  the  night  force  should  be  included.  The 
usual  procedure  in  organizing  such  drills  is  that  of  appoint- 
ing a  captain  for  each  floor  and  instructing  the  employes  to 
follow  their  aisle  leader  to  the  nearest  exit  in  quiet,  unhurried 
order.  The  fire  chief  is  usually  the  police  chief  or  chief  elec- 
trician who  is  in  command  when  the  alarm  sounds. 

In  the  Bourn ville  Works  a  fire  brigade  of  twenty-nine  men 
is  on  call  by  special  signals  day  and  night.  They  are  re- 
munerated by  bonuses  for  practice  attendance,  and  a  quar- 
terly allowance  toward  house  rent.  The  brigade  gains  expe- 
rience in  combating  fires  by  being  allowed  to  turn  out  for 
any  call  in  the  locality  of  the  factory.  Two  members  are 
appointed  each  week  to  inspect  daily  all  rooms  after  work 
hours,  disposing  of  neglected  waste,  closing  fireproof  doors 
and  shutters,  and  removing  obstructions  which  may  prevent 
easy  access  to  the  fire  appliances.  Fire  drills  are  held  occa- 
sionally. Fire  exits  lead  down  to  the  ground  and  up  to  the 
roof,  where  roof  walks  make  it  possible  to  get  from  one  end 
of  the  works  to  the  other. 


CHAPTER  VII 
MEDICAL  CARE 

Extent  of  Illness  in  Industry.  —  Efficiency  and  health  are 
inseparable.  Yet  statistics  indicate  a  markedly  debilitated 
state  of  health  in  the  working  population.  A  recent  study 
of  750,000  workers  made  by  the  United  States  Public  Health 
Service  showed  the  existence  of  a  6  per  cent  non-effective 
working  force  in  American  industry.1  Minor  ailments  are 
chiefly  responsible  for  this  large  percentage  of  non-effectives. 
Fresh  colds  are  allowed  to  develop  into  bronchitis  and 
scratches  into  infected  sores,  decayed  teeth  lead  to  intestinal 
poisoning,  and  small  ills  are  generally  ignored  until  their 
cumulative  effects  result  in  serious  illness  or  disease.  The 
net  result  is  that  in  the  United  States  some  284,750,000  days 
are  lost  yearly  by  33,500,000  wage  earners.2  Each  worker 
loses  approximately  8|  days  a  year  at  an  annual  loss  to  the 
country  of  some  three  quarters  of  a  billion  dollars.  In  terms 
of  one  large  corporation  in  1916  this  meant  that  10  per  cent 
of  their  turnover  was  due  to  illness.  In  another  corporal  ion 
it  was  13  per  cent.3 

Economy  and  Expediency  Make  Illness  an  Industrial 
Problem.  —  The  prevention  and  cure  of  illness  is  essentially 
a  community  and  not  an  industrial  problem.  The  individual 
employer,  however,  can  do  much  to  eliminate  disease  and  pre- 
vent accidents  by  providing  sanitary,  hygienic,  and  safe 
working  conditions  with  reasonable  hours  and  adequate 
wages.  Beyond  the  factory  or  office  building  lie  heredity, 
bad  habits,  impure  food  and  water,  unsanitary  housing,  and 
all  the  various  causes  of  disease  over  which  he  has  little 
direct  control.     In  spite  of  this  fact  employers  are  rapidly 

103 


164  THE   HUMAN   FACTOR   IN   INDUSTRY 

discovering  that  there  is  a  dollar  and  cents  return  from  pro- 
viding medical  care  for  employes,  at  the  company's  whole  or 
partial  expense.  Even  though  we  may  hope  some  day  for 
public  provision  and  supervision  of  medical  care  for  the 
entire  community,  there  will  always  be  a  residue  for  which 
the  industrial  unit  should  be  held  responsible. 

Pioneer  Corporations  in  Industrial  Medical  Care.  — 
Railroads  were  among  the  first  to  consider  the  care  of  their 
employes.  As  early  as  1867  the  Southern  Pacific  Railroad 
Company  rented  a  residence  in  Sacramento,  California,  for 
a  temporary  hospital  and  in  18G9  built  the  first  hospital  in 
this  country  for  the  care  of  railroad  employes.4  Large 
corporations  were  also  pioneers  in  investing  capital  in  medical 
care.  The  Crane  Company  in  1886  established  one  of  the 
first  separate  medical  departments  in  any  industrial  concern, 
and  shortly  afterwards  built  a  sanatorium  for  disabled  em- 
ployes.5 In  the  nineties  the  Swift  Company  installed  a  full- 
time  physician  in  their  plant,6  and  the  National  Cash  Register 
Company  began  the  physical  examination  of  employes  in 
1901. 7  Many  Chicago  corporations  undertook  the  medical 
care  of  their  employes  after  the  campaign  of  the  Tuberculosis 
Institute  in  1911,  which  sought  first  and  foremost  the  adop- 
tion of  an  examination  of  all  employes  in  order  to  detect 
tuberculous  symptoms.  Thirty  firms  joined  in  conferences 
held  by  the  institute  and  the  campaign  finally  resolved  itself 
into  one  for  the  adoption  of  a  general  medical  examination 
of  employes  in  order  to  detect  any  disease  or  physical  defect. 
The  result  was  that,  in  three  years'  time  forty-seven  firms 
had  joined  the  movement,  representing  187,100  employes, 
and  the  entrance  examination  was  adopted  by  firms  covering 
58,000  employes.8 

Effect  of  Workmen's  Compensation  Laws.  —  Thus  initia- 
tive on  the  part  of  individual  firms  has  done  much  to  establish 
preventive  and  curative  medical  care  of  employes  as  a  func- 
tion of  industry.     But  isolated  efforts  of  this  sort  would 


MEDICAL   CARE  165 

have  done  little  to  popularize  the  movement  had  it  not  been 
for  the  passage  of  Workmen's  Compensal  ion  Laws.  In  Ohio, 
for  instance,  prior  to  1914,  only  four  establishments  outside 
of  the  railroads  examined  applicants  for  work.  Within  a 
year  and  a  half  after  the  Workmen's  Compensation  Law 
went  into  effect,  forty-two  establishments,  employing  68,500 
persons,  had  installed  the  physical  examination  cither  of 
applicants  for  work,  or  of  all  employes,  or  both.9  Moreover, 
since  the  introduction  of  Workmen's  Compensation  Laws 
the  occupational  diseases  of  lead  and  phosphorous  poisoning 
have  attracted  sufficient  attention  to  bring  about  legislation 
in  some  of  our  States  in  regard  to  the  medical  care  of  workers 
in  trades  utilizing  these  materials. 

Progress  during  the  War.  —  During  the  recent  war  great 
impetus  was  given  the  movement  to  conserve  the  labor 
power  of  the  country  through  the  promotion  of  industrial 
medicine.  In  addition  to  the  Division  of  Industrial  Medicine 
and  Hygiene  of  the  United  States  Public  Health  Service, 
organized  in  1912,  similar  bureaus  have  been  organized 
since  1814  by  the  Department  of  Labor,  the  Ordnance 
Department,  the  Railroad  Administration,  the  Shipping 
Board  and  the  Council  of  National  Defense.  Six  medical 
colleges  have  introduced  courses  in  Industrial  Hygiene,  and 
four  others  are  known  to  be  contemplating  such  courses.1 
The  American  Association  of  Industrial  Physicians  and 
Surgeons,  formed  in  1915  with  seventy-five  charter  members, 
in   I'.UN  numbered  three  hundred  and  sixty.10 

Evident  Value  of  Medical  Care.  -  The  movement  to  pre- 
vent and  cure  illness  in  industry  by  providing  facilities  for 
treatment  and  diagnosis  has  now  gained  such  momentum 
that  there  is  scarcely  need  to  argue  its  value.  ( rraphic  illus- 
tration of  the  effect  of  such  health  supervision  in  reducing 

lost  time  was  found  by  the  New  York  Department  of  Health," 
which  noted  a  marked  reduction  and  by  the  Norton  Com- 
pany.    With    the  Norton  Company  the    use  of   the  dispell- 


1G6  THE    HUMAN   FACTOR   IN    INDUSTRY 

sary  is  voluntary,  but  its  value  as  a  time  saver  is  great.  In 
one  year  it  was  found  that  of  all  the  men  who  lost  time 
from  sickness  or  accident,  those  who  applied  to  the  hospital 
saved  an  average  of  19.2  hours  per  man  per  month  over 
those  who  did  not  do  so.12 

Some  plants  report  the  elimination  of  septic  infections  or 
blood  poisoning  from  minor  accidents  by  the  introduction 
of  emergency  equipment.  An  Ohio  manufacturer,  by  put- 
ting in  an  emergency  hospital,  reduced  absenteeism  due 
to  infection  from  six  cases  a  day  to  four  cases  a  month.  In 
one  year's  time  the  emergency  hospital  of  a  New  York  de- 
partment store  reduced  absenteeism  by  more  than  72  per 
cent.13 

Obvious  Benefit  of  Periodic  Physical  Examination.  — 
The  records  of  periodic  physical  examination  show  most 
clearly  the  immediate  benefit  of  medical  care.  One  corpora- 
tion, as  an  experiment,  gave  a  careful  physical  examination 
to  one  hundred  of  its  principal  employes  in  April,  1918,  and 
followed  this  with  reexaminations  in  September,  1918,  and 
February,  1919.  Of  the  forty-nine  employes  reexamined 
in  September,  59  per  cent,  or  twenty-nine  employes,  showed 
improvement  in  the  following  items  :  u 

No.  Per  Cent 

Blood  pressure 7  14 

Lungs 1  2 

Pulse 1  2 

Urinalysis 2  4 

Teeth 12  24 

Eyes 3  6 

Ears 2  4 

Weight 11  22 

Constipation        2  4 

Personal  hygiene 2  4 

In  February,  thirty-one  of  these  employes  were  again 
checked  up  and  improvement  noted  as  follows : 


MEDICAL   CARE  167 

No.  Per  Cent 

Blood  pressure 10  32 

Teeth 5  16 

Skin 1  3 

Weight 2  6 

Diet 1  3 

The  Metropolitan  Life  Insurance  Company,  in  the  first 
examination  of  their  employes,  found  marked  defects  of 
heart,  lung,  or  kidney  in  two  hundred  and  fifty-five  out  of 
every  one  thousand  men  examined.  Only  47  per  cent  of  these 
cases  of  impairment  persisted  at  the  time  of  the  second  ex- 
amination, one  year  later.15  The  New  York  City  Depart- 
ment of  Health  found  decided  improvement  after  one  year 
in  10  per  cent  of  the  cases  of  impairment  and  among  the 
first  twenty-four  men  reexamined  were  the  following  inter- 
esting cases : 16 

Case  I.  Age  18;  first  examination,  June,  1914;  weight  136 
pounds ;  not  well ;  short  of  breath ;  pulse  1 12 ;  heart  enlarged. 
Second  examination  ;  September,  1915;  weight  140  pounds ;  looks 
and  feels  well ;   no  shortness  of  brea  fch. 

Case  II.  Age  22;  first  examination,  June,  1014;  weight  135 
pounds  ;  rapid  abnormal  heart  sounds  ;  some  shortness  of  breath  ; 
pulse  104.  Second  examination,  September,  1915 ;  feels  and  looks 
better ;   weight  147  pounds ;   pulse  96. 

Among  the  women  were  the  following : 

Case  III.  Tubercular  lesion  found  on  examination.  Had 
leave  of  absence  for  5  months.  New  hack  a l  work,  (lain  in  weight 
retained,   and  pulmonary  condition   satisfactory. 

Case  VI.  On  examination  a  valvular  In  art  murmur  was  found, 
with  dyspnoea  after  exercise.  Was  not  aware  of  lesion  until  dis- 
closed by  examination.  lias  been  very  careful  since  then  not  to 
overstrain   heart,  and   is  now   in  excellent    condition. 

Cask  VII.  On  examination  a  patient  was  found  amende, 
haemoglobin  IS  per  cent,  pain  in  cardiac  region,  systolic  hear) 
murmur;  looked  and  fell  sick.  Was  advised.  Oil  reexamination, 
haemoglobin  had  reached  80  per  oenl  ;  there  was  no  cardiac  pain, 
no  heart  murmur,  and  thero  was  great  improvement  in  appearance. 


168  THE   HUMAN   FACTOR   IN   INDUSTRY 

Needed  Development. — We  await  a  development  and  co- 
ordination of  public  and  industrial  health  agencies  to  make 
effective  the  program  proposed  by  the  Division  of  Industrial 
Hygiene  and  Medicine  of  the  Working  Conditions  Service 
of  the  Department  of  Labor  in  1919,  which  includes  (1)  pro- 
vision for  instruction  in  prevention  of  disease,  (2)  health 
supervision  for  all  recreation  and  amusements  in  industrial 
plants,  (3)  study  of  adequate  laws  governing  sanitation, 
food,  milk,  water  supplies  and  housing,  (4)  installation  and 
supervision  of  departments  of  health  and  sanitation  in  indus- 
trial centers,  (5)  educational  service  for  the  people  of  indus- 
trial centers.17  To  some  extent,  however,  about  8,000,000 
of  the  nation's  workers  have  already  been  affected  by  em- 
ployers' efforts  to  improve  health  conditions.1  There  still 
remain  some  30,000,000  wage  earners  who  have  not  been 
touched. 

Medical  Examinations 

Medical  Examinations  the  Keystone.  —  In  some  industries 
examinations  are  made  only  by  request.  In  others  they  are 
required  periodically  by  the  week,  month,  or  year,  or  on  such 
occasions  as  entrance,  promotion  and  reemployment,  or 
after  any  absence  due  to  illness  or  accident,  —  as  the  nature 
of  the  occupation  or  the  judgment  of  the  employer  or  medical 
supervisor  dictates.  The  keystone  of  preventive  medical 
work  in  industry  is  the  entrance  and  periodic  examination 
of  employes.  The  purpose  of  such  examinations  is  often 
misunderstood  by  employer  and  employe.  Compensation 
laws,  it  is  claimed,  have  caused  employers  to  use  the  physical 
examination  as  a  means  of  eliminating  "  risks,"  and  the 
result  has  been  the  exclusion  of  efficient  applicants  and  an 
attitude  of  distrust  between  employe  and  employer.  It  does 
not  necessarily  follow  that  the  physically  less  perfect  em- 
ployes are  "  risks,"  This  is  indicated  not  only  by  the  experi- 
ence of  American  manufacturers  such  as  the  Avery  Company 


MEDICAL   CARE  169 

but  by  reports  of  the  British  Health  of  Munitions  Workers 
Committee.  These  show  a  comparatively  low  rate  of 
accidents  among  the  less  healthy  workers.  Among  1542 
men,  accidents  affected  7  per  cent  of  those  in  A,  the  highest 
health  group,  with  an  average  loss  of  twenty-six  days  a  year, 
and  in  health  groups  B,  C,  and  D,  4  per  cent,  with  an  aver- 
age loss  of  twenty-four  days.18 

Placement,  not  Rejection,  the  Purpose  of  Entrance  Exami- 
nation. —  The  purpose  of  the  entrance  examinations  should 
not  be  to  reject  or  discharge  the  great  number  of  applicants 
or  employes  who  are  physically  imperfect,  but  to  prevent 
their  employment  in  particular  kinds  of  work  for  which  they 
are  disqualified.  Specific  impairments  will  render  the  appli- 
cant unfit  for  specific  work,  although  any  one  impairment, 
even  a  comparatively  serious  one,  does  not  disqualify  the 
applicant  for  all  work.  In  some  cases  it  is  even  possible  that 
the  company  physician  may  so  advise  an  applicant  how  to 
correct  a  diseased  or  defective  condition  that  he  may  later 
take  up  work  with  the  firm.  Properly  placed,  the  physically 
imperfect  employe  may  be  an  asset  to  his  employer  because 
of  his  comparative  stability  and  his  disinclination  to  leave 
work  in  which  he  is  making  good. 

There  will  always  be  an  irreducible  minimum  of  rejections 
of  applicants  for  work  because  of  their  physical  condition. 
But  the  use  of  the  physical  examination  as  a  basis  of  discrimi- 
nation against  the  physically  incapacitated  in  either  employ- 
ment or  promotion  may  be  a  boomerang  to  the  employer. 
It  arouses  the  antagonism  and  distrust  of  the  employes. 
The  purpose  of  the  examination  —  to  place  and  keep  the 
employe  in  work  for  which  he  is  physically  qualified,  not  to 
shut  him  out  from  all  occupations  —  must  be  reiterated 
again  and  again. 

Kind  of  Examination.  —  The  form  of  the  entrance  exami- 
nation is  usually  that  of  the  insurance  company  or  of  the 
army.     In  deciding  the  Length  and  nature  of  the  examinal  ion 


170  THE   HUMAN   FACTOR   IN   INDUSTRY 

the  applicant's  point  of  view  must  be  considered.  From 
twenty  to  thirty  minutes  suffice  for  the  insurance  type  of 
examination.  Too  long  and  extensive  an  examination  will 
keep  away  applicants,  but  for  some  occupations,  such  as  those 
involving  the  handling  of  food  products,  or  for  work  requir- 
ing constant  standing  or  walking,  examinations  below  the 
waist  are  necessary.  In  the  examination  of  female  employes 
a  nurse  should  be  in  attendance  unless  the  doctor  is  a  woman. 

Standard  Examinations.  —  The  standards  for  physical 
examinations  for  various  positions,  prepared  by  the  Municipal 
Civil  Service  Commission  of  New  York  City  in  1916,  are 
valuable  because  they  recognize  their  different  require- 
ments and  specify  the  particular  disqualifying  defects.  The 
types  of  positions  for  which  examinations  were  prepared 
were  (1)  clerical  and  stenographic,  (2)  positions  in  the 
inspectional  service  requiring  the  moderate  degree  of  physi- 
cal ability  needed  in  walking  long  distances  or  carrying 
light  loads,  (3)  positions  involving  the  high  degree  of  physical 
effort  needed  in  the  performance  of  severe  manual  labor  or 
such  dangerous  work  as  that  of  the  blacksmith  or  boiler 
maker,  and  (4)  positions  in  the  police  and  fire  service  demand- 
ing the  highest  physical  ability.19 

Examination  by  Outside  Doctor  Unsatisfactory.  —  Medical 
certificates  from  outside  doctors  do  not  take  the  place  of 
systematic  examinations  made  by  the  industrial  physician. 
One  dishonest  doctor  in  a  community  will  negate  their  entire 
purpose,  while  insufficient  information  as  to  the  needs  of  the 
industry  will  render  the  certificate  of  little  value.  To  some 
extent  these  difficulties  may  be  obviated  if  standardized 
medical  certificate  and  examination  forms  for  each  occupa- 
tion are  used  by  all  doctors  in  the  neighborhood,  and  the 
reports  submitted  to  the  employer.  But  both  time  and 
money  are  saved  where  the  firm  is  large  enough  to  warrant 
a  full-time  examining  physician  or  where  a  group  of  small 
firms  can  combine  in  employing  a  full-time  medical  staff. 


MEDICAL  CARE  171 

Failure  of  Deferred  Examination.  —  Occasionally  a  com- 
pany tries  to  save  expense  by  giving  a  superficial  exami- 
nation of  the  applicant  for  work  and  following  this  up  with 
a  more  searching  one  after  the  employe  has  proved  his 
suitability  and  liking  for  his  work.  This  method  does  not 
seem  advisable.  The  value  of  the  examination  is  to  prevent 
the  introduction  of  tuberculosis  and  other  infections  and 
contagious  diseases  by  the  new  employe  and  to  place  him 
from  the  start  in  work  for  which  he  is  physically  qualified, 
thus  obviating  the  cost  to  employer  and  employe  of  transfer 
or  discharge. 

Value  of  Periodic  Examination.  —  The  value  of  periodic 
physical  examinations  is  evident  from  an  investigation  made 
by  Mr.  Alexander.  In  nineteen  metal-trade  establishments 
with  medical  departments  the  ratio  of  medical  cases  to  the 
total  number  of  surgical  and  medical  cases  averaged  22.32  per 
cent.  But  in  plants  with  a  yearly  examination  this  propor- 
tion of  medical  cases  was  reduced  by  1|  per  cent ;  in  plants 
with  a  semi-annual  examination,  by  5  per  cent ;  in  those 
with  a  quarterly  or  every  four  months  examination,  by 
nearly  75  per  cent.20  The  more  frequent  the  examination, 
the  less  frequent  the  illness  incidence,  and  for  this  reason, 
at  least,  the  yearly  reexamination  is  imperative  in  any 
industry.  It  is  rendered  of  far  greater  value  when  supple- 
mented Ity  observation  and  the  examination  of  all  employes 
returning  from  a  sickness  absence  and  a  more  frequent  re- 
examination  of  those   predisposed    to   disease,    or   below   par 

generally,  or  exposed  to  occupational  poisonings.  This  is 
done  by  one  firm  in  Chicago  employing  10,000  men  and 
women,  and  suspicious  eases  are  filed  separately  under  "  re- 
examinations." The  doctor  calls  such  employes  as  often 
as  he  thinks  necessary.  When  a  case  requires  m  daily  tem- 
perature and  pulse  chart  it  is  made  out  by  the  muse  every 
morning  and  night  for  a  shari  period,  and  if  trouble  is  indi- 
cated a  thorough  diagnosis  is  made.-1 


172  THE   HUMAN   FACTOR   IN    INDUSTRY 

Introduction  of  Periodic  Examinations.  —  Many  plants 
have  successfully  introduced  a  system  of  periodic  exami- 
nations by  beginning  with  the  managerial  staff  and  the  heads 
of  departments  before  examining  the  other  employes.  Show- 
ing no  discrimination  between  executives  and  subordinates 
gains  the  employes'  confidence.  With  a  little  foresight  and 
tact  any  company  should  be  able  to  equal  the  record  of  the 
International  Harvester  Company,  where,  out  of  a  total  of 
20,000  examinations  made  in  three  years,  only  20  employes 
objected  to  the  examination,  and  these  waived  their  objec- 
tions when  its  purpose  was  explained.22 

The  Sears  Roebuck  Company  chose  a  wise  course 
when  instituting  the  periodic  physical  examination  of  their 
employes  in  1914.  Of  the  15,151  employes  examined  in  one 
year,  27  per  cent  were  found  with  a  definitely  diseased  con- 
dition. None  of  these  was  discharged.  Many  were  given 
vacations,  or  free  hospital  and  sanatorium  care.  Some 
were  referred  to  their  family  physicians  and  others  cared 
for  by  the  company  doctors.23 

Examinations  Confidential.  —  It  is  well  to  stress  the  con- 
fidential nature  of  the  examination.  With  the  New  York 
Department  of  Health  all  medical  records  are  held  confiden- 
tial by  the  medical  department  and  are  never  referred  to 
in  cases  of  promotion.24  The  American  Telephone  and 
Telegraph  Company  number  all  the  records  of  the  medical 
department,  and  the  corresponding  list  of  names  is  held  only 
by  the  physician  in  charge.25 

Publicity  a  Substitute  for  Compulsion.  —  The  periodic 
examination  need  not  be  made  compulsory  if  its  purpose  and 
value  as  a  health  maintenance  measure  are  well  advertised. 
The  employes  will  probably  respond  to  the  doctor's  summons 
more  readily  if  the  employer's  mandate  is  not  attached  and 
will  value  the  doctor's  advice  more.  Unless  the  employes 
are  themselves  in  control  of  the  medical  department  and  its 
policies,  compulsion  in  connection  with  the  reexamination 


MEDICAL   CARE  173 

may  breed  a  suspicion  of  the  employer's  motives  in  thus 
watching  the  employes. 

The  Plant  Medical  Equipment 

Kind  of  Medical  Equipment  Needed.  —  The  kind  of 
medical  equipment  needed  in  a  plant  will  depend  on  the 
nature  of  the  industry  and  the  ratio  of  medical  and  surgical 
treatments  called  for.  With  a  clerical  force  numbering  about 
five  thousand,  the  Metropolitan  Life  Insurance  Company  in 
1917  had  an  average  of  one  hundred  and  five  daily  visits  to 
the  dispensary,  calling  for  twice  as  many  medical  as  sur- 
gical treatments.  In  nineteen  metal-trade  establishments, 
on  the  contrary,  the  proportions  of  medical  to  surgical  cases 
is  one  to  four.20 

Emergency  Equipment.  —  First-aid  work  with  emergency 
equipment  is  becoming  standardized.  Some  States  require 
the  first-aid  kit  in  factories,  workshops  and  mercantile 
establishments.  There  are  all  degrees  of  elaboration  in 
first-aid  equipment,  from  the  soiled  roll  of  bandaging  gauze 
which  stands  perennially  intact  in  the  corner  of  an  office 
shelf  to  the  emergency  hospital  and  operating  room  with  its 
attendant  staff  of  surgeons  and  nurses. 

First- Aid  Kits.  —  The  instructions  printed  on  the  cover 
of  the  first-aid  cabinets  used  in  the  Vickers  Limited  factories, 
one  of  the  largest  munitions  plants  in  England,  describe  a 
kit  which  proved  adequate  during  three  years'  war  experi- 
ence. One  such  kit  is  provided  for  every  50  employes.26 
1.  Forceps,  to  re-  1.  This  First-Aid  Cabinet  is  to  To  apply 
move   and    hold  be  used  only  in  very  alight     above  a  pro- 

dressings       (and  injuries,  and  only  in  parts  of     hiselybleed- 

to    catch    artery  the     factory     very    remote     in^    wound, 

in    grave    emer-  from  the  works  surgery.  The  pad  to 

gency    only    by  be       placed 

surgeon).  over      the 

neanst  arte- 
rial point. 


174 


THE   HUMAN   FACTOR   IN    INDUSTRY 


2.  Scissors,  to 
open  packets, 
etc. 


All  severe  wounds,  i.e.  bleed- 
ing, gaping,  with  loss  of  tis- 
sue, or  deep,  severe,  and 
painful  burns  to  go  to  the 
works  surgery. 


3.   Metal        Holder,    3.  The    dressing    packets  to  be 


containing  sterile 
eye  brushes 
(covered  with 
wool) . 


4.  Bottle  of  Eye 
Application 
(cocaine,  castor 
oil,  5  per  cent 
perchloride,  1- 
3000). 


removed  and   held  only  by 
the    forceps    (1),    cut    open 
with  scissors  (2). 
N.   B.  —  Fingers  must   not 
be  used  to  pick  out  packets. 

4.  Wounds  must  not  be 
washed  or  touched  with 
anything.  Simply  paint 
with  iodine  solution  (5),  or 
with  collodion  (6),  then  a 
large  or  small  dressing. 


5.  Bottle  of  Iodine 
Solution,  2  per 
cent  •  to  paint 
wounds. 


5.  Burns  and  scalds,  apply  a 
large  or  small  burn  dressing 
at  once. 


Bottle  of  Collo- 
dion, to  apply 
over  very 
slight  wounds 
which  neither 
bleed  nor  gape. 


6.  Eye  injuries.  No  particle 
must  be  picked  out  of  the  eye 
with  any  sharp  instrument. 
It  is  only  allowable  to  brush 
the  particle  out  with  one  of 
the  sterile  brushes  (3)  on 
which  drop  a  few  drops  of 
eye  solution ;  (4)  if  still 
painful  or  a  particle  remains, 
go  to  the  works  surgery. 

7.  Re-dressings  allowed  only  of 
very  slight  injuries,  where  no 
pain,  swelling,  discharge  or 
redness. 

8.  All  cases  dealt  with  here 
must  be  entered  on  the 
register  attached. 


MEDICAL  CARE  175 

Different  kits  will  be  needed  in  different  industries,  how- 
ever. Dr.  Mock,  after  a  special  study  of  industrial  accidents, 
has  recommended  the  following  contents  for  a  first-aid  kit : 
(1)  a  bottle  of  tincture  of  iodine  (5  per  cent) ;  (2)  a  bottle 
of  applicators ;  (3)  a  bunch  of  sterilized  dressings  put  up 
singly  in  paper  envelopes ;  (1)  a  few  large  sterilized  pads  to 
be  used  in  case  of  hemorrhage  or  large  wounds  ;  (5)  bandages 
and  a  constrictor  of  stout  muslin,  which  is  safer  in  the  hands 
of  a  layman  than  a  rubber  tourniquet ;  (6)  a  bottle  of 
aromatic  spirits  of  ammonia.  A  sign  on  the  First-Aid  Box 
warns  the  employes  that  it  is  for  first-aid  only,  and  that  every 
injured  employe  should  go  to  the  doctor's  office  at  once,  no 
matter  how  slight  the  injury.  Dr.  Mock  reports  a  reduction 
in  infections  in  one  industry  from  28.6  of  all  accidents  to 
10  per  cent,  after  the  introduction  of  the  use  of  tincture  of 
iodine  in  the  first-aid  treatment.23 

Model  Emergency  Equipment.  —  Miss  Whitney,  after 
making  an  investigation  of  medical  equipment  in  factories 
for  the  United  States  Bureau  of  Labor  Statistics  in  1917, 
describes  the  following  model  emergency  equipment : 27 

For  a  company  having  a  limited  amount  of  space  and  wishing  to 
install  emergency  equipment  at  a  moderate  cost,  one  room  that  was 
equipped  at  an  approximate  cost  of  $1000  was  almost  a  model  of 
its  kind.  The  floor  of  rubber  tiling  cost  $350.  The  plumbing, 
which  was  of  the  most  modern  type,  having  knee  pressure  faucets 
and  all  the  fittings  of  the  best  porcelain,  cost  $2">0.  The  rest  of  the 
equipment,  consisting  of  two  medicine  cabinets,  an  instrument 
cabinet,  a  porcelain  operating  slab,  an  electric  instantaneous  heater 
for  use  in  case  the  other  hot-water  supply  should  fail,  an  electric 
warming-pan,  a  sanitary  cot,  and  a  sanitary  screen  by  which  the  cot 
can  be  entirely  shut  off  from  the  rest  of  the  room,  was  furnished  at 
the  cost  of  about  $400. 

A  description  of  an  elaborate  emergency  equipment 
which  has  been  practically  standardized  by  one  large  com- 
pany and  which  may  be  modified  to  meet  the  needs  of  indi- 
vidual plants,  is  as  follows  : 


176  THE    HUMAN   FACTOR   IN    INDUSTRY 

All  interior  woodwork  is  finished  with  sufficient  number  of  coats 
of  paint  and  enamel  to  give  a  finish  which  can  easily  be  washed  and 
kept  clean.  The  operating,  re-dressing,  and  bath  rooms  have  a  tile 
or  vitralite  wainscoting,  and  the  floors  are  of  marble  chips  set  in 
cement.  This  is  preferable  to  a  tile  flooring,  as  tile  where  subject 
to  rough  usage  becomes  gray  and  porous  and  thus  more  difficult  to 
keep  in  a  sanitary  condition.  Steel  enamel  chairs  and  tables  are 
used  in  preference  to  wood,  as  they  are  more  sanitary  and  wear 
better.  The  re-dressing  room  is  used  for  the  re-dressing  of  all  cases 
and  for  minor  injuries  and  medical  cases.  The  equipment  here 
consists  of  a  washstand  with  knee  or  foot  faucet  attachments,  a 
foot  bath,  medicine  and  instrument  cabinets,  bottle  rack  for  anti- 
septic solutions,  basin  stands,  instrument  sterilizers,  dressing 
carriage  tables,  chairs  and  nurse's  desk,  Justrite  pail,  and  the  neces- 
sary surgical  instruments. 

The  operating  room  is  equipped  similarly  to  the  re-dressing  room, 
with  the  addition  of  high-pressure  steam,  hot  and  cold  water,  in- 
strument and  utensil  sterilizer.  The  wards  or  recovery  rooms  are 
equipped  with  beds,  tables,  and  chairs.  Beds  are  furnished  with 
electric  warming  blankets  and  heating  pads.  The  X-ray  and 
laboratory  room  is  used  for  diagnosis  of  fractures  and  diseases. 

A  toilet  is  a  necessary  accompaniment  of  the  emergency 
room. 

Complete  Medical  Department.  —  But  the  emergency 
equipment  fills  only  part  of  the  needs  of  a  working  force. 
In  small  plants  one  room  may  suffice  for  all  medical  work, 
while  large  plants  often  have  separate  buildings  for  the 
medical  departments,  like  that  of  Crane  Company,  where  a 
one-story  building  includes  rooms  for  consultation,  treat- 
ment, dressings,  sterilizing,  examinations,  operating,  X-ray, 
laboratory,  and  a  rest  room.28  The  committee  on  Medical 
Supervision  of  the  Detroit  Employers'  Association  estimated 
that  the  medical  department  for  a  unit  of  1400  to  2000  em- 
ployes requires  three  rooms,  —  a  reception  room,  an  examin- 
ing room  and  a  surgery  or  dressing  room.29 

An  analysis  of  the  medical  and  surgical  facilities  for  em- 
ployes offered  by  the  medical  departments  of  one  hundred 


MEDICAL  CARE  177 

and  seventy  industrial  establishments  in  the  Eastern  and 
Middle  Western  States  in  1918  lists  in  order  of  the  fre- 
quency of  their  occurrence,  dressing  rooms  (the  only  room 
common  to  all  of  the  establishments),  waiting  rooms,  doctors' 
offices,  physical  examination  rooms,  wards,  operating  rooms, 
store  rooms,  X-ray  rooms,  laboratories,  clerical  offices, 
dental  offices,  sterilizing  rooms,  dark  rooms,  special  exami- 
nation and  treatment  rooms,  attendants'  rooms,  recovery 
rooms,  and  toilets.* 

Dental  Clinics 

Dental  Clinics  Popular.  —  A  recent  survey  revealed  dental 
clinics  in  sixty  large  industrial  concerns  in  the  United  States.30 
The  scope  of  their  work  varies  considerably,  in  some  plants 
including  only  examination  and  prophylaxis;  in  others 
examination,  prophylaxis,  and  fillings,  or  all  types  of  den- 
tistry ;  and  in  a  few  instances  dental  care  is  extended  to  the 
children  of  employes.  The  work  is  done  at  either  t  ho  em- 
ployer's or  employe's  expense  and  in  the  employer's  or  em- 
ploye's time. 

Economy  of  Dental  Clinic. — The  value  of  the  dental 
clinic  is  indicated  by  the  experience  of  the  B.  F.  Goodrich 
Company  of  Akron,  Ohio,  where  only  1000  of  21, GOG  em- 
ployes examined  in  1915  did  not  need  dental  attention.81 
The  Metropolitan  Life  Insurance  Company  in  1917  made 
3101  examinations  and  cleansings  in  the  company's  time 
and  free  of  cost,  and  in  addition  treated  4950  emergency 
cases.32  These  latter  alone  would  have  meant  a  loss  of  at 
least  half  a  day's  time  in  each  case  had  the  company  dis- 
pensary not  been  available. 

An  interesting  case  of  a  clerk  in  a  filing  section  of  the 
Metropolitan  Life  Insurance  Company  is  reported  by  the 

♦For  description  of  those  medical  departments  and  a  dispensary  equip- 
ment approved  by  the  United  States  Public  Health  Service  Bee:  Public 
Health  Bulletin  No.  99,  1919. 

N 


178 


THE    HUMAN    FACTOR    IN    INDUSTRY 


Dental  Division.  After  being  with  the  company  for  several 
years  and  never  having  a  satisfactory  attendance  record  the 
clerk  was  finally  referred  to  the  Medical  Division  because 
she  showed  fatigue  early  in  the  morning  and  suffered  from 
sciatica  and  neuritis.  She  had  lost  thirty  pounds  in  two 
years  and  was  subject  to  frequent  attacks  of  tonsilitis  and 
headaches.  A  radiograph  examination  showed  three  in- 
fected teeth  which  were  subsequently  extracted.  The 
rheumatism  and  neuritis  attacks  practically  ceased  and, 
at  the  date  of  reporting  the  case,  for  one  year  this  clerk  had 
had  a  perfect  attendance  record  for  the  first  time  in  her 
employment. 

Undoubtedly  there  is  a  close  relation  between  absenteeism 
and  bad  teeth,  though  comparative  statistics  are  not  avail- 
able. The  following  table  prepared  by  Dr.  Hyatt  shows  the 
possible  effect  which  abscessed  or  infected  teeth  and  gums 
had  on  the  health  of  the  employes  of  the  Metropolitan 
Life  Insurance  Company,  as  revealed  in  the  medical  and 
dental  examinations.32 


Disease  or  Condition 

No  Serious 
Condition 
Discovered 

Radio- 
graph 
Showing 
Infection 

Cases 

Showing 

Blind 

Abscess 

Neuralgia  and  Neuritis     .     . 

Colds  and  Nasal  Fossae     .     . 
Abscess  and  Skin  Trouble     . 

3.8 
1.9 
1.7 
19.8 
2.4 
2.6 
.9 

4.2 
2.9 
3.7 
23.1 
3.8 
4.0 
1.1 

8.3 
3.2 
4.5 
23.6 
4.5 
4.5 
3.3 

Treatment  Offered.  —  Advice  as  to  the  needed  repairs  and 
prophylaxis  may  be  given  at  the  time  of  the  entrance  ex- 
amination. The  preliminary  examination  is  often  the  only 
dental  care  afforded  on  the  factory  premises,  though  some- 


MEDICAL   CARE  179 

times  accompanied  by  simple  prophylactic  treatment.  The 
Avery  Company  distributes  educational  bulletins  on  the 
care  of  the  teeth,  and  the  Crane  Company  sometimes  holds 
up  an  applicant  for  employment  until  the  needed  work  is 
done.  In  the  Joseph  and  Feiss  Company  the  patient  is 
given  a  chart  which  states  the  probable  cost  of  the  work 
needed.  The  dentist  visits  the  factory  one  morning  a  week, 
bringing  his  own  instruments,  while  the  company  furnishes 
the  chair,  foot  engine,  and  other  equipment.  The  majority 
of  the  employes  go  to  the  company's  dentist  for  further 
work,  though  they  are  not  urged  to  do  so.31  In  the  Metro- 
politan Life;  Insurance  Company,  X-rays  are  made  at  the 
time  of  the  entrance  examination  if  a  serious  condition 
is  suspected.32  The  Armstrong  Cork  Company  of  Pitts- 
burgh gives  the  employe  examination,  cleansing,  and  fill- 
ings at  the  company's  expense,  and  in  the  company's 
time.  The  Kimberly  Clark  Company  of  Neenah,  Wis., 
insures  the  proper  care  of  the  teeth  of  its  employes  by 
paying  25  per  cent  of  all  employes'  dentists'  bills  which  are  in 
addition  to  the  original  inspection  made  by  the  company's 
dentist,  at  the  company's  expense. 

Cost  of  Treatment.  —  The  cost  of  dental  service  with  the 
Armstrong  Cork  Company  of  Pittsburgh,  Pa.,  where  about 
2400  patients  a  year  receive  on  an  average  of  one  hour's 
attention,  was  $5000  in  191G.33  The  initial  cost  of  the 
clinical  equipment  of  the  Metropolitan  Life  Insurance 
Company  was  $1087.41  in  1916.  In  L918  running  expenses 
were  $2019. (17  and  salaries  $18,915.66,  Where  the  com- 
pany's offer  of  a  biennial  examinal  ion  and  prophylactic  treat- 
ment is  accepted,  it  cost  the  company  in  1916,  $2.33  per  pa- 
tient per  annum.31 

Optical  Clinics 

Visual  Defects  Common.  —  The  recent  statistics  of  the 
United  States  drafted  army  show  the  importance  of  the  clinic 


180  THE   HUMAN   FACTOR  IN    INDUSTRY 

which  makes  good  optical  care  accessible  to  the  employe 
without  great  expenditure  of  time  and  money.  Twenty-two 
per  cent  of  the  causes  for  rejection  were  for  visual  defects.34 
Too  often  an  individual  is  not  aware  of  visual  imperfec- 
tions and  as  often  a  cheap  optician  will  make  the  wrong 
diagnosis  and  supply  incorrect  lenses.  Almost  75  per 
cent  of  2906  persons  in  the  garment  trades  in  New  York 
City  in  1914  were  found  with  defective  vision.  Only  11.7 
per  cent  of  these  wore  glasses  and  only  one  half  of  these 
glasses  were  correct.35 

Value  of  Optical  and  Dental  Clinics.  —  The  story  of  a  clerk 
in  the  employ  of  the  Metropolitan  Life  Insurance  Company 
gives  interesting  evidence  of  the  value  of  an  optical  clinic 

working  in  conjunction  with  a  dental  clinic.     Miss  S 

complained  of  a  blurring  of  vision  in  the  left  eye.  A  small 
patch  of  exudate  was  found  in  the  retina,  but  the  oculist 
could  discover  no  cause.  Complete  rest  and  absence  from 
work  seemed  the  only  remedy.  The  patient  was  referred 
to  the  dental  division  first.  Four  badly  decayed  and  in- 
fected teeth  were  extracted,  and  immediately  the  original 
trouble  with  the  eye  disappeared. 

Clinics  in  Operation.  —  The  optical  clinic  is  not  frequent 
in  industrial  establishments  as  yet.  That  of  Cheney 
Brothers,  where  some  5000  persons  are  employed,  supplies 
40  to  50  pairs  of  glasses  in  one  month  and  secures  glasses 
from  good  optical  concerns  by  contract,  at  $2  to  $4  a  pair.36 
The  Joseph  and  Feiss  Company  employs  a  nurse  who  makes 
a  superficial  eye  test  of  applicants.  An  oculist  employed 
for  two  mornings  a  week  completes  the  examination  of  those 
with  defective  vision  and  prescribes  glasses  if  necessary. 
These  are  secured  by  the  company  from  a  first-class  optician 
at  half  price.37 

Economic  Value.  —  The  optical  clinic  of  the  Metropolitan 
Life  Insurance  Company  with  one  oculist  in  attendance  is 
open   for   examinations   every   afternoon.     An    optician    is 


MEDICAL   CARE  181 

present  for  three  afternoons  a  week  to  fit  and  adjusl  glasses. 
During  1918,  974  tests  for  glasses  were  made  and  glasses  and 
repairs  were  secured  at  wholesale  prices  for  3468  persons.38 
The  money  collected  for  the  wholesale  supply  company  for 
glasses  and  repairs  in  1918  was  $6263.25.  The  cost  to  the 
firm  was  simply  the  salary  of  one  part-time  oculist,  the  half 
time  of  a  clerk,  and  the  original  cost  of  a  dark  room  for 
examining  purposes.  In  these  three  instances  the  diag- 
nosis is  made  at  the  cost  of  the  employer,  but  the  employe 
pays  for  the  glasses. 

Hospital  and  Sanatoria  Care  for  Employes 

Varied  Provisions  for  Protracted  Disability.  —  Large 
corporations  occasionally  provide  hospital  care  for  pro- 
tracted disability,  as  is  the  case  in  several  large  mining 
industries  and  steel  companies.  This  is  done  usually  where 
the  industry  is  in  an  isolated  district  or  where  other  hos- 
pital care  is  inadequate.  Railroad  companies  were  among 
the  first  to  erect  their  own  hospitals.  Workmen's  Com- 
pensation Laws  have  also  led  to  arrangements  between  com- 
panies and  outside  hospitals  for  the  care  of  injured  employes 
at  the  expense  of  employers.  A  growing  appreciation  of 
the  seriousness  of  the  problem  of  tuberculosis  has  developed 
"  Free  Bed  Funds  "  for  the  care  of  tuberculous  employes, 
supported  by  employers  and  employes  together.  In  a 
few  instances  corporations  support  tuberculosis  sanatoria 
for  their  employes. 

Company  Hospitals.  —  Among  three  hundred  and  seventy- 
five  establishments  investigated  in  1916-1917,  twenty-four 
maintained  their  own  hospitals.  One  company  with  several 
plants  maintains  four  hospitals  for  its  35,000  employes. 
A  corps  of  forty-three  physicians,  three  dentists,  one 
oculist,  and  twenty  nurses  treat  approximately  600  hospital 
and  300,000  dispensary   cases   every  year.     Expenses  are 


182  THE    HUMAN   FACTOR    IN    INDUSTRY 

met  by  a  $.75  monthly  deduction  from  the  wages  of  each 
employe,  in  return  for  which  the  employe  may  receive 
medical  or  surgical  treatment,  though  he  must  pay  sepa- 
rately for  board  at  the  hospital.39  The  elaborately  equipped 
Minnequa  Hospital  of  the  Colorado  Fuel  and  Iron  Com- 
pany treated  8244  cases  from  July  1,  1917,  to  July  1,  1918.40 

Tuberculosis  Sanatoria.  —  The  Metropolitan  Life  Insur- 
ance Company  Tuberculosis  Sanatorium  at  Mt.  McGregor, 
New  York,  opened  in  1913,  is  by  far  the  most  ambitious 
undertaking  of  its  kind.  It  is  on  621  acres  of  ground, 
1046  feet  above  sea  level,  in  the  foothills  of  the  Adiron- 
dacks.  In  the  midst  of  the  buildings  is  a  small  lake.  The 
plant  includes  a  Power  House,  six  Ward  Buildings,  Infir- 
mary, Refectory,  Administration  Building,  Ice  House,  Nurses' 
Home,  Superintendent's  House,  Rest  House,  Chapel,  Em- 
ployes' Dormitory,  Water  Tower,  Pump  House,  Recrea- 
tion Building,  and  Stable.  Open-air  covered  passages 
connect  all  the  main  buildings.41  Two  small  cottages  for 
married  couples  are  about  to  be  constructed.  The  total 
capacity  of  the  Sanatorium  is  322  patients,  including  beds 
in  the  Rest  House  for  non-tuberculous  emplo3res  suf- 
fering from  anemia,  nervous  breakdown,  and  other  chronic 
troubles.  From  the  time  of  its  erection  until  1920,  1003 
patients  were  discharged,  including  223  non-tuberculous 
employes.32  In  the  Recreation  Buildings  there  are  special 
rooms  reserved  for  the  teaching  of  handicraft  work,  to 
occupy  the  patients  until  fitted  to  reenter  the  firm's  employ. 
Other  patients  do  gardening  on  the  hospital  farm  if  they 
are  strong  enough.  The  hospital  magazine,  The  Optimist, 
and  office  work  furnish  paid  positions  to  other  patients. 

The  Crane  Company  likewise  has  a  sanatorium  and  farm 
for  the  recuperation  and  outdoor  treatment  of  their  em- 
ployes at  Buffalo  Rock,  near  Ottawa.5  In  1910,  32  large 
firms  in  Chicago  built  and  equipped  the  Valmora  Industrial 
Sanatorium  in  Watrous,  New  Mexico,  for  their  tubercular 


MEDICAL  CARE  183 

employes,  with  a  capacity  for  only  30  patients.  Five  dollars 
is  the  membership  fee  for  either  firm  or  person  and  $20.00 
extra  is  charged  firms  for  cadi  person  in  their  employ  over 
1000.42  The  treatment  costs  $10.00  a  week  and  is  paid  by 
cither  employe  or  employer.  There  are  difficulties  with 
this  arrangement,  however,  in  that  the  sanatorium  is  so 
far  away  that  the  expense  of  transportation  is  a  large  item, 
and  its  inaccessibility  makes  it  harder  to  persuade  an  em- 
ploye to  accept  provision  for  his  care.  The  Sears  Roebuck 
Company's  method,  of  paying  the  expenses  of  tuberculous 
employes  in  nearby  outside  sanatoria,  would  seem  more 
practical. 

Tuberculosis  in  Industry 

Tuberculosis  in  Different  Occupations.  —  In  any  in- 
dustrial health  campaign  one  of  the  first  objectives  is  the 
detection  and  arrest  of  tuberculosis,  which  is  the  cause  of 
20.5  per  cent  of  all  deaths  at  all  ages  in  nineteen  different 
occupations  —  according  to  1he  mortality  experience  of  the 
Metropolitan  Life  Insurance  Company.  Forty  per  cent  of 
those  who  die  from  tuberculosis  are  between  the  ages  of 
25  and  34  and  their  average  age  at  death  is  37.1  years. 
Among  clerks,  bookkeepers,  and  office  assistants  occur  35 
per  cent  of  all  the  deaths  from  tuberculosis  ami  one  half 
of  these  occur  in  the  above  age  group.  The  proportionate 
mortality  from  this  disease  is  high  among  textile  workers, 
saleswomen,  garment  workers,  compositors  and  printers, 
plumbers,  gas  and  steam  fitters,  longshoremen  and  steve- 
dores, teamsters  and  drivers.     Tuberculosis  is  least  common 

among  coal  miners  and  comparatively  rarely  affects   farmers 
and  farm  laborers.48 
This  uneven  distribution  of  tuberculosis  among  different 

occupations  is  apparent  even  within  a  single  plant.      In  one 

shop  of  the  International  Harvester  Company  there  was 
only    one    case    among    700    men    in    two    years,    whereas 


184  THE   HUMAN   FACTOR   IN   INDUSTRY 

among  400  office  employes  the  tuberculosis  rate  was  high 
and  in  many  departments  far  exceeded  the  entire  plant 
average.22  In  any  clerical  force  the  tuberculosis  rate  is 
higher  than  in  a  shop  force,  not  only  because  the  physically 
vigorous  are  apt  to  avoid  sedentary  occupations  but  be- 
cause the  work  itself  is  so  confining. 

The  Periodic  Examination  an  Important  Preventive.  — 
A  high  tuberculosis  rate  in  any  one  occupation  may  be  due 
to  the  home  environment  of  the  class  of  labor  involved,  or 
to  inadequate  sanitation  and  overheated,  moist  or  dusty 
air  in  the  work  place,  or  to  the  nature  of  the  occupation. 
Methods  of  checking  the  spread  of  the  disease  and  restoring 
the  diseased  worker  to  an  efficient  state  of  health  must  vary 
accordingly,  but  no  effort  made  by  employers  to  assist  tuber- 
cular employes  is  of  permanent  value  unless  it  leads  to  the 
early  detection  of  new  cases.  The  most  potent  factor  in 
preventing  and  curing  tuberculosis  in  any  occupation  is  the 
periodic  physical  examination.  The  value  of  catching  the 
disease  in  its  incipiency  is  obvious.  In  a  group  of  patients 
of  the  Loomis  Sanatorium,  Loomis,  New  York,  37  per  cent 
of  seventy-eight  incipient  cases  obtained  and  retained  satis- 
factory health  and  working  efficiency.44  The  early  detection 
of  tubercular  conditions  is  made  possible  in  industry  only 
by  the  periodic  physical  examination.  In  the  sanatorium 
maintained  by  the  Metropolitan  Life  Insurance  Company, 
66+  per  cent  of  the  admissions  were  in  the  incipient  stage 
in  1917,  and  there  is  a  steady  yearly  increase  in  the  propor- 
tion of  incipient  cases  admitted.  This  fact  is  attributed 
to  the  annual  physical  examination.32 

A  Successful  Tuberculosis  Campaign.  —  Some  efforts  to 
check  tuberculosis  in  industry  have  proved  the  possibility 
of  success.  In  1904  the  management  of  a  large  boot  and 
shoe  factory  in  the  small  town  of  Oxford,  Mass.,  discovered 
that  one  out  of  every  six  deaths  among  their  employes  was 
caused  by  tuberculosis.     The  company  immediately  under- 


MEDICAL  CARE  185 

took  the  education,  examination  and  treatment  of  their 
workers.  In  1907  only  four  people  in  all  Oxford  died  from 
tuberculosis,  which  indicates  the  success  of  the  company's 
campaign.45 

Failure  of  Tuberculosis  Campaigns  Caused  by  Em- 
ployers. —  Less  successful  efforts  were  made  shortly 
afterwards  by  firms  in  Providence,  Rhode  Island,  and 
in  Worcester,  Mass.  Plants  in  Providence  posted  plac- 
ards asking  employes  with  suspicious  lung  symptoms  to 
report  for  a  medical  examination  by  the  company's  phy- 
sician.45 This  voluntary  reporting  system  is  obviously 
unsatisfactory  unless  curative  assistance  is  widely  adver- 
tised. In  Worcester,  by  an  agreement  arranged  by  Dr. 
Overlock  with  the  Department  of  Health,  thirty-four  manu- 
facturers consented  to  pay  the  expenses  of  treatment  for 
tubercular  employes.  The  movement  was  given  great 
publicity  throughout  New  England,  and  in  a  few  years  it 
supposedly  included  1200  mercantile  and  manufacturing 
establishments  employing  2,000,000.46 

A  National  Association  was  about  to  be  formed,  when  an 
investigation  disclosed  the  fact  that  only  six  of  the  thirty- 
four  Worcester  firms  nominally  taking  part  in  the  move- 
ment were  willing  to  post  notices  asking  employes  to  be 
examined.  Seven  of  these  firms  did  not  even  want  i(  known 
that  they  were  willing  to  pay  the  expenses  of  treatment, 
emphatically  stating  that  they  promised  nothing,  and  would 
render  aid  only  in  individual  cases.  The  lack  of  coopera- 
tion among  the  participating  employers  brought  about  the 
collapse  of  this  valuable  organized  effort  to  combat  tuber- 
culosis in  its  very  infancy.47 

Free  Bed  Funds  Play  No  Part  in  Prevention.  —  Em- 
ployers and  employes  of  Hartford,  New  Haven,  and  Meri- 
den  chose  a  different  path  and  joined  in  contributing  to 
Free  Bed  Funds  for  tuberculous  workers.  Although  this 
form  of  cooperative  effort  has  proved  highly  useful  in  the 


186  THE    HUMAN   FACTOR   IN   INDUSTRY 

curative  phase  of  the  work,  no  system  of  regular  examina- 
tion of  all  employes  has  been  adopted,  and  consequently 
prevention  plays  little  or  no  part  in  the  various  schemes. 
Much  more  pertinent  and  valuable  has  been  the  work  of  the 
Chicago  Tuberculosis  Institute,  mentioned  previously.  This 
included  the  general  physical  examination  for  all  employes 
and  made  the  entrance  examination  common  in  Chicago 
industries.8 

Reemployment  of  Tuberculous.  —  Whether  or  not  the 
industry  assumes  responsibility  for  the  care  of  tuberculous 
workers,  their  reemployment  and  after  care  are  essentially  an 
industrial  problem.  Dr.  Vogeler  of  the  Sprain  Ridge  Sana- 
torium for  working  people,  in  Yonkers,  has  pointed  out  the 
distinct  advantage  of  having  the  employe  return  to  his 
former  occupation,  provided  the  conditions  of  the  working 
place  are  favorable.  Light  outdoor  work  is  hard  to  get, 
while  the  pay  is  also  light  and  risk  of  exposure  dangerous. 
Sixty  per  cent  of  the  Sprain  Ridge  discharged  patients  have 
returned  to  their  old  employments  instead  of  entering  new 
work,  and  the  results  have  been  most  satisfactory  because 
the  employe  can  command  a  higher  wage  in  the  work  to 
which  he  is  accustomed,  which  means  better  food  and  better 
home  surroundings,  and  because  he  is  freed  from  the  worry 
of  learning  a  new  trade.  Moreover,  work  of  some  kind  is 
recommended  to  every  discharged  patient  as  essential  to 
the  maintenance  of  good  health.48 

After  Care.  —  With  the  employe  back  at  work  for  which 
he  is  suited,  there  remains  the  necessity  of  careful  watching 
to  prevent  the  return  of  the  disease.  In  the  Metropolitan 
Life  Insurance  Company  a  Home  Office  clerk  on  his  return 
from  the  sanatorium  reports  twice  a  week  to  the  Dispensary 
to  be  weighed  and  twice  a  month  for  a  thorough  medical 
examination.  Milk  is  served  twice  daily  to  anaemic  or  tuber- 
culous employes,  in  the  Rest  Room.  The  result  of  this  after 
care  is  that  in  a  period  when  ninety-eight  employes  were 


MEDICAL  CARE  187 

returned  to  active  duty  from  Mt.  McGregor,  only  six  were 
sent  back  because  of  a  relapse  to  their  former  tuberculous 
condition.32 

Medical  Staff 

Comparative  Costs  of  Regular  and  Part-Time  Staff.  — 
Of  the  47  metal-working  establishments  with  medical 
departments  investigated  by  Mr.  Alexander,  20  employed 
regular,  full-time  physicians  and  surgeons  and  27  employed 
regular  physicians  for  only  part  time  or  subject  to  call. 
The  average  cost  of  medical  supervision  in  the  latter  groups 
with  only  one  third  as  many  employes,  was  8G.4  per 
cent  higher  than  the  average  cost  in  all  47  establish- 
ments.20 Evidently  the  cost  is  greatly  decreased  where  the 
medical  staff  is  in  constant  attendance,  ready  to  meet  every 
emergency.  Every  delay  in  medical  or  surgical  treatment 
means  an  added  expense  from  prolonged  treatment  and 
from  ensuing  absenteeism.  For  this  reason  it  is  impera- 
tive that  a  plant  either  maintain  its  own  corps  of  physicians 
and  nurses  or  join  with  neighboring  plants  in  meeting  the 
expense  of  such  a  corps. 

Joint  Medical  Department  Maintained  by  Small  Plants. 
—  This  is  done  in  Walpole,  Mass.,  where  four  small  plants 
join  in  hiring  a  nurse.49  In  1915  the  Commissioner  of 
Public  Health  of  Toledo  proposed  the  organization  of  a 
"Bureau  of  Industrial  Safety,  SanitatioD  and  Hygiene,  to 
be  Maintained  on  the  Mutual  Plan."  This  bureau  was 
"designed  to  do  for  the  small  employer  what  the  large 
manufacturer  is  able  to  do  for  himself,"  in  the  way  of  edu- 
cational work,  the  exchange  of  information,  the  making  of 
investigations  or  surveys  and  the  offering  of  recommenda- 
tions. The  activities  outlined  do  not  indicate  the  extent  of 
medical  or  surgical  treatment  contemplated.  The  plan  is 
suggestive,  however,  of  the  possibility  of  cooperative  medi- 
cal supervision  in  small  plants.  An  outline  of  the  organiza- 
tion of  this  bureau  is  charted  as  follows:  50 


188 


THE   HUMAN   FACTOR   IN   INDUSTRY 


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MEDICAL   CARE  189 

The  annual  expense  of  maintaining  this  centralized  service 
was  estimated  in  1915  to  be  $12,000.  The  Commerce  Club 
and  the  employers  utilizing  the  bureau  were  to  share  in  the 
cost. 

Size  of  Staff.  —  Mr.  Trautschold  has  made  the  follow- 
ing estimate  of  the  number  of  physicians  and  nurses  in 
different-sized  plants,  based  on  the  data  collected  by  Mr. 
Alexander : 20 

Less  than  3000  workers  1  physician  1  nurse 

3000  to  4000  "  1  "  2  nurses 

5000  to  6000  "  2  physicians  2      " 

7000  to  10,000         "  4  "  8      " 

More  than  20,000  "  (for  every  1000)  1  physician  2      " 

Some  companies  employ  a  proportionately  larger  medical 
staff  than  this,  the  Metropolitan  Life  Insurance  Company, 
for  instance,  having  four  regular  physicians  and  four  nurses 
for  the  sole  care  of  the  company's  clerical  personnel,  which 
numbers  between  four  and  five  thousand. 

Allowing  Physicians  Time  for  Outside  Practice.  —  Dr. 
Mock  suggests  that  every  plant  physician  should  have 
some  outside  practice,  study,  and  investigation,  to  heighten 
his  prestige  with  the  community  and  the  employes  and  to 
broaden  and  stimulate  him  in  his  work.45  Perhaps  the 
Cleveland  Foundry  Company's  plan  of  giving  their  full-time 
physician  three  months'  leave  each  year  for  hospital  practice 
is  a  more  practical  method  of  stimulating  the  physician 
and  lending  him  prestige,  than  trying  the  more  expensive 
half-time  system.51  The  whole-time  industrial  doctor  is 
able  to  give  his  complete  attention  to  the  problems  of  in- 
dustrial medicine  and  to  the  organization  of  the  medical 
department.  In  the  study  of  present  medical  work  in  east- 
ern industries,  the  survey  made  by  the  United  States  Pub- 
lic Health  Service  in  1918  showed  thai  the  departments 
employing  full-time  physicians  covered  a  much  larger  field 
of  service  and  did  more  for  the  employes.52 


190  THE   HUMAN   FACTOR   IN   INDUSTRY 

Plant  Nurse.  —  Just  as  important  as  the  plant  physician 
is  the  plant  nurse.  In  the  examination  of  women  employes 
a  nurse's  presence  is  necessary.  In  some  plants  she  as- 
sists in  the  preliminary  medical  examination.  Her  duty 
lies  chiefly  in  supervising  the  first-aid  and  hospital  work, 
inspecting  the  sanitary  conditions  of  the  plant,  noticing 
signs  of  fatigue  among  the  employes,  superintending  the 
rest  rooms,  giving  talks  on  health  and  hygiene,  and  visiting 
sick  or  convalescent  employes. 

Home  Nursing.  —  The  Home  Nursing  and  Visiting  Nurse 
Associations  which  exist  in  nearly  every  large  city  are  very 
satisfactory  agents  for  home  visiting.  In  Detroit,  the  Visit- 
ing Nurse  Association  takes  over  the  entire  nursing  responsi- 
bility at  the  salary  of  one  nurse  or  gives  nursing  service 
at  the  rate  of  $.50  a  visit.  The  Home  Nursing  Associa- 
tion charges  $10.00  or  $14.00  a  week  for  nursing  service 
(1917).  The  value  of  the  service  is  stressed  particularly  as 
an  economy  in  saving  the  strength  of  the  man  whose  wife 
is  ill.  In  a  survey  of  10,000  homes  of  moderate  means 
the  Home  Nursing  Association  of  Detroit  found  that  out  of 
2000  maternity  cases  675  were  cases  in  which  the  family 
wage  earner  was  emploj^ed  by  a  manufacturing  firm,  and  in 
653  cases  the  husband  acted  as  nurse  at  night,  while  in  158 
cases  he  was  absent  from  work  from  one  to  four  days,  in  31 
cases  for  a  week,  and  in  four  cases  for  two  weeks.29  The 
function  of  a  visiting  nurse  as  a  time  saver  in  such  cases  is 
clear. 

Importance  of  Personality.  —  The  success  of  medical  work 
done  in  industry  is  largely  dependent  on  the  personality  of 
the  doctors  and  nurses.  The  employe  must  have  confidence 
not  only  in  their  skill  but  in  their  sincerity  and  friendliness 
of  purpose.  It  remains  with  the  company  doctor  to  show 
that  he  is  trying  to  keep  an  employe  on  the  job  and  not  to 
act  as  a  company  detective  seeking  the  discharge  of  the 
inefficient  worker. 


MEDICAL   CARE  191 

Medical  Records 

Value  of  Health  Statistics  and  Records.  —  The  records 
of  the  medical  department,  if  properly  developed,  are  a 
valuable  source  of  information  in  regard  to  conditions  in  the 
plant  and  in  the  community  and  a  guide  posi  to  needed  im- 
provements. More  than  one  fourth  of  the  population  of 
this  country  belongs  to  the  industrial  group  and  therefore 
any  statistics  of  health  which  the  industry  can  secure  are  of 
value  in  public  health  work.  The  records  recommended  for 
a  medical  department  by  a  committee  of  the  National 
Safety  Council  include  :  53 

1.  Records  of  physical  examination. 

2.  Weekly  reports  of  morbidity. 

3.  Weekly  reports  of  absenteeism. 

4.  Report  of  labor  turnover. 

Physical  Examination  Records.  —  The  records  of  the 
physical  examination  should  include  the  data  relating  to 
the  industrial  history  and  social  history  as  well  as  to  the 
physical  condition  of  the  employe.  Sex,  age,  nativity, 
years  in  the  United  States,  ability  to  speak  English,  mari- 
tal condition,  number  of  children,  previous  occupations, 
names  of  former  industries  and  departments  in  which 
examinee  was  employed  and  the  duration  of  employment 
in  each,  all  form  necessary  data.  This  will  usually  be  se- 
cured on  the  application  blank,  and  in  such  cases  can  be 
duplicated  in  the  medical  records  by  clerks.* 

Weekly  Morbidity  Reports.  -  The  recommended  weekly 
reports  of  morbidity  would  show   the   following  data: 

1.  Industry.  2.    Department  ol  industry. 

3.  Occupation  of  the  sick.  I.    Nature  of  illnesses. 

5.  Total  time  lost. 

6.  Average  number  of  sick  employes  in  each  department. 

*  For  forms  of  medical  and  dental  ezaminatioD  and  records  in  me  in 

different  plants  see:    Public  Health  Bulletin  No.  99  of  the  United  States 
Public  Health  Service,  1919. 


192  THE   HUMAN   FACTOR   IN   INDUSTRY 

Absenteeism  Records.  —  The  percentage  of  absentee- 
ism in  industry  indicates  the  percentage  of  sickness.  Dur- 
ing the  war,  in  one  munitions  factory  in  England  employing 
950  men,  charts  were  kept  of  the  amount  of  sickness  and 
absenteeism.  In  fifty  weeks'  time  the  absenteeism  curve 
rose  twenty-four  different  times.  Twelve  times  it  was  ac- 
companied by  a  rise  in  the  sickness  curve.  Nine  times  the 
sickness  curve  rose  immediately  afterwards,  showing  that 
the  previous  week's  absenteeism  presaged  illness  or  minor 
ailments  which  were  too  slight  in  the  first  week  to  cause  the 
employe  to  go  to  the  doctor  or  secure  a  medical  excuse.54 
Absenteeism  records  are  therefore  of  significance  in  esti- 
mating health  conditions  in  the  industry.  These  records 
should  show  the  — 

1.  Net  loss  to  industry,  due  to  illness  as  a  whole. 

2.  Net  loss  due  to  preventable  illness. 
A  —  From  industrial  conditions. 

B  —  From  community  conditions. 

3.  Net  loss  to  industry  due  to  voluntary  absences  arising  from 
other  causes  than  illness. 

Cost  and  Control  of  Medical  Care 

Small  Per  Capita  Cost.  — "  A  sum  equivalent  to  the 
wages  of  the  average  worker  for  but  half  a  minute  each 
working  hour  of  the  year  would  be  sufficient  to  cover  the 
total  average  medical  and  surgical  cost  (the  entire  cost  of 
health  supervision)  per  year  per  employe  in  an  establish- 
ment suffering  from  aggravated  ill  health  and  unusually 
frequent  accidents,  while  the  wages  of  the  average  worker 
for  but  ten  seconds  per  working  hour  a  jrear  would  more 
than  cover  the  usual  cost  of  proper  health  supervision." 
This  is  the  striking  cost  estimate,  including  the  salaries  of 
physicians,  nurses,  any  outside  medical  or  surgical  service, 
and  supplies,  which  Mr.  Trautschold  deduced  from  data 
collected  by  Mr.  Alexander.20    The  following  table,  com- 


MEDICAL   CARE 


193 


paring  the  data  obtained  from  ninety-nine  establishments 
with  medical  supervision,  is  interesting  : 


Statistics  of  Costs 


Total 

£  * 

^  i 

o  a 
a  2  x 

Average 
Number 

Total 

Z  x  o 

a  -  r 

Total 

Medical 

Total 

Industry 

a  J  h 

a  ak 

ys  <  X 

of  Em- 

Cases of 

-  I   - 
2  <  S 

AND 

Coht 

ployes 

All  Kinds 

gOpq 

Surgical 

per  Em- 

E 3  8 

p  S  s 

Super- 

Treated 

g  X   ft 

Cost 

ploye 

ZB 

vised 

3«g 

Metal  Trades    . 

47 

294,646 

1,988,991 

6.75 

$541,771 

$1.84 

Rolling  Mills     . 

(Brass) 

7 

49,317 

358,574 

7.28 

137,047 

2.78 

Light  and  Power 

7 

24,921 

49,046 

1.97 

92,601 

3.72 

Chemicals     . 

6 

10,572 

7S.7II 

7.45 

34,797 

3.29* 

Transportation 

5 

35.795 

SI. 591 

2.28 

69,633 

1.95 

Food   .... 

5 

1 3.i  ■..-■<) 

09.565 

5.10 

39,875 

2.92 

Rubber    .     .     . 

5 

27,462 

234, 069 

8.52 

76,089 

2.77 

Textiles    .     .     . 

4 

8,939 

67.3S0 

7.53 

24,177 

2.70* 

Paint  .... 

2 

4.023 

10.255 

2.55 

29,635 

7.37 

Leather    . 

2 

3,026 

9,440 

3.12 

6,102 

2.02 

Publishing    . 

2 

3,358 

6,742 

1.03 

3,473 

1.03 

Smelting  and 

Retining    . 

1 

1.270 

2,832 

2.23 

6,932 

5.46 

Coal  Alining 

1 

2,454 

2,842 

1.16 

4,637 

1.89 

Coal  and  Iron 

Mining 

1 

11.000 

131.  SOS 

12.00 

130,000 

11.82* 

Gold  Mining 

1 

2,500 

62,126 

24.80 

35,590 

14.24* 

Miscellaneous    . 

3 
99 

2,611 

11,019 

4.22 

6,126 

2.35 

495,544 

3,165,114 

6.39 

$1,238,485 

$2.7)0 

In  those  99  plants,  covering  195,511  employes,  the 
average  annual  cost  per  case  thus  varied  from  $.27  to  $2.89, 
giving  an  average  cosl  per  case  treated  of  $.39  and  an 
average  cost  per  employe  of  $2.50.  <  knitting  the  four  plants 
in  which  treatment  was  also  extended  to  the  families  of  em- 
ployes, the  average  cost  per  employe  was  $2.21. 

♦Includes   one  establishment    at    which   treatment  is  extended  to  the 
families  of  employes  at  their  homes. 
o 


194  THE   HUMAN   FACTOR   IN   INDUSTRY 

Cost  of  Medical  Care  Usually  Met  by  Employer.  —  The 
cost  of  medical  supervision  is  commonly  met  by  the  em- 
ployer and  sometimes  by  a  mutual  benefit  society  sup- 
ported jointly  by  employers  and  employes.  In  1916,  out 
of  a  total  of  300  mutual  benefit  societies  investigated  by  the 
Department  of  Labor,  twenty-six,  which  were  managed 
and  supported  by  employes  alone,  and  forty,  which  were 
managed  and  supported  partially  or  entirely  by  the  com- 
pany, employed  regular  full-time  or  part-time  physicians. 
In  summarizing  the  investigation  Mr.  Sydenstricker  said :  55 

Defining  medical  and  hospital  service  in  terms  of  broadest 
latitude,  the  statement  may  be  ventured  that  in  less  than  a  fourth 
of  the  establishment  funds  so  far  considered  are  there  benefits  of 
this  kind,  and  that  the  great  majority  of  funds  supplying  such  serv- 
ice are  among  those  partly  or  wholly  supported  and  controlled 
by  the  employers. 

In  two  mutual  benefit  associations,  however,  the  dues  cover 
medical  service  for  the  families  of  employes.  In  one  of 
these  cases,  home  and  hospital  service,  medicines  and  am- 
bulance service  are  furnished.39 

Cooperated  Support.  —  In  some  plants  the  company  and 
the  employes  cooperate  in  meeting  the  expenses  of  medical 
care,  the  company  paying  for  the  equipment  and  the  em- 
ploye for  running  expenses.  In  twelve  companies  recently 
investigated,  employes  pay  monthly  medical  fees  ranging 
from  $.50  to  $1.50  for  married  employes,  and  from  $.25  to 
$1.50  for  single  employes.  In  a  few  cases  these  dues  cover 
the  cost  of  medical  and  surgical  attention  for  employes  and 
their  families.  The  hospital  care  provided  is  usually  ex- 
clusive of  board  except  in  free  wards.39  The  dues  are  paid 
in  the  form  of  deductions  from  wages.  Public  opinion 
does  not  favor  compulsory  deductions  from  wages  for  the 
support  of  a  medical  department  or  hospital  which  is  man- 
aged by  the  company  and  which  the  employe  may  or  may 
not  care  to  patronize.     A  voluntary  yearly  fee,  such  as  that 


MEDICAL   CARE  195 

subscribed  by  members  of  a  democratically  managed  mutual 
benefit  association,  appears  to  be  a  method  of  obtaining  co- 
operative support  without  arousing  the  employes'  hostility 
and  distrust. 

Cost  Met  by  Employes.  —  The  plant  personnel  is  such  a 
shifting  quantity  that  it  is  scarcely  to  be  expected  that  the 
employes  independently  could  maintain  an  adequate  sys- 
tem of  medical  care.  Less  changeable  groups  of  workers, 
such  as  the  International  Ladies'  Garment  Workers  and  the 
Workmen's  Circle  (Arbeiter  Ring)  have,  however,  success- 
fully organized  and  supported  hospital  and  clinical  treat- 
ment for  their  members.56 

"Arbeiter  Ring"  Sanatorium. — The  Workmen's  Circle 
is  a  Jewish  organization  with  a  membership  of  48,000,  drawn 
from  600  branches  throughout  the  country.  Its  purpose 
is  primarily  to  provide  its  members  with  money  benefits 
for  burials  and  sickness.  In  February,  1910,  with  only 
7000  members,  it  bought  an  old  farmhouse  in  Liberty,  New 
York,  for  $6000  and  opened  a  tuberculosis  sanatorium  sup- 
ported by  dollar  dues  from  each  menber.  The  rapidly 
growing  membership  has  enabled  transformation  of  this 
old  farmhouse  into  an  administration  building,  the  erec- 
tion of  a  finely  equipped  hospital  with  all  modern  improve- 
ments, a  steam  laundry,  and  four  Lean-to's.  The  two 
physicians  in  charge,  Dr.  Julius  Hal  pern  of  New  York  and 
Dr.  Charles  Rayewsky,  are  strong  in  the  belief  that  the 
success  of  the  institution  is  largely  dependent  on  the  pa- 
tients' enjoyment  of  the  independence  and  freedom  which 
accompany  a  sense  of  ownership. 

Joint  Board  of  Sanitary  Control.  —  The  most  complete 
example  of  unsubsidized,  cooperative  medical  care  of  in- 
dustrial workers  is  that  of  the  Cloak,  Suit,  Skirt  and  Dress 
and  Waist  Industries  of  New  York  City.  It  was  organized 
under  the  direction  of  Dr.  George  M.  Price  of  the  Joint 
Board  of  Sanitary  Control,  which  was  established  in  1910, 


196  THE    HUMAN    FACTOR   IN    INDUSTRY 

and  on  which  are  representatives  of  the  public,  the  workers' 
unions,  and  the  manufacturers'  associations  in  those  in- 
dustries. With  the  combined  financial  support  of  manu- 
facturers and  workers  the  Board  supervises  the  fire  pro- 
tection, accident  prevention,  first-aid  work,  sanitation,  and 
general  health  education  in  some  3500  shops,  owned  by  3000 
manufacturers,  employing  about  80,000  workers.  But  all 
the  individual  and  medical  care  is  supported  and  controlled 
by  the  employes  and  unions  alone.57 

Scope  of  Work  Done.  —  The  scope  of  the  medical  work 
is  wide.  It  includes  the  examination  of  all  applicants  for 
membership  in  any  union  or  for  employment  in  any  shop 
(this  has  been  true  only  since  October  1,  1918,  when  the  en- 
tire International  Ladies'  Garment  Workers'  Union  with  a 
membership  of  about  125,000  adopted  a  system  of  benefits 
for  tuberculous  members :  previously  only  three  local 
unions  had  sick-benefit  funds  requiring  the  entrance  examina- 
tion of  new  members),  the  examination  of  all  those  claim- 
ing sick  benefits,  the  examination  and  reexamination  of  all 
shop  workers  in  need  of  medical  advice,  special  heart  and 
lung  examination,  a  therapeutic  clinic,  an  eye,  ear,  nose,  and 
throat  clinic,  and  a  dental  clinic. 

Cost  of  Medical  Clinic.  —  The  medical  clinic  is  largely 
supported  by  the  $1.00  fee  which  is  charged  for  each  en- 
trance examination  of  new  union  members.  Monthly 
contributions  from  local  unions  in  the  past  have  given  the 
other  necessary  financial  support.  The  total  cost  of  the 
work  done  in  1919  was  $7006.87  for  12,493  patients  and 
14,334  treatments.  The  expense  therefore  averaged  $.56  a 
patient  and  $.49  a  treatment.  Current  individual  records 
number  approximately  28,000.  Five  physicians  comprise 
the  medical  staff  and  are  employed  for  periods  of  two  hours 
each,  from  one  to  five  periods  a  week,  as  needed,  at  the 
rate  of  $4.00  to  $5.00  an  hour  to  each  physician.  The 
medical  staff  is  therefore  elastic  and  can  be  made  to  corre- 


MEDICAL   CARE  197 

spond  with  the  seasonal  fluctuations  in  the  number  seeking 
medical  care. 

Cost  of  Dental  Clinic.  —  In  the  dental  clinic,  $3.00  is  the 
approximate  rate  with  extra  charges  of  $  .75  for  an  X-ray 
film,  $1.00  up  for  extraction  with  anaesthesia,  and  from 
$25.00  to  $35.00  and  up  for  rubber  plates,  gold  lingual  bars, 
or  gold  plates.  One  full-time  dentist  is  employed  at  a  salary 
of  $600.00  a  month,  and  several  part-time  dentists  at  a  fee 
of  $2.00  an  hour  for  every  hour  engaged.  The  original 
equipment  cost  $3545.  In  1919,  8379  patients  received 
treatment  and  the  clinic  totaled  an  income  of  $12,542.68. 

Cost  of  Eye,  Ear,  Nose,  and  Throat  Clinic.  —  The  eye, 
ear,  nose,  and  throat  clinic  charges  $1.00  per  patient  and 
employs  two  specialists  by  periods  of  from  one  to  two  hours, 
at  the  rate  of  $10.00  a  period.  So  far,  an  average  of  five  or 
ten  patients  are  treated  every  period. 

Doctors  Paid  on  Time  Basis.  —  Thus  no  physician  has  a 
financial  interest  in  any  of  the  clinics,  all  of  them  being  paid 
on  a  time  basis,  and  the  dental,  and  eye,  ear,  nose,  and 
throat  clinics  are  entirely  self-supporting.  In  only  one, 
but  important,  respect  are  the  clinics  dependent  on  the 
Joint  Board  of  Sanitary  Control,  and  that  is  for  the  direc- 
tion of  Dr.  Price,  whose  main  work  lies  with  the  Division 
of  Sanitation  but  who  gives  his  supervision  gratis  to  the 
medical  department. 

Health  Education 

Health  Talks.  —  A  series  of  health  talks  delivered  to  the 
employes  of  the  National  Lain])  Works  of  the  General  Electric 
did  more  to  advertise  the  medical  department  than  anything 
else.  A  course  of  thirteen  talks  is  delivered  during  the 
year  to  classes  of  not  more  than  thirty  employes,  meeting 
twice  a  week.  One  or  two  employes  are  chosen  from  each 
department  in  order  not  to  interrupt  the  work  of  the  plant, 


198  THE   HUMAN   FACTOR   IN    INDUSTRY 

and  45  minutes  of  company  time  plus  15  minutes  of  the 
lunch  hour  are  given  to  these  health  talks.  Diagrams  and 
health  charts  are  freely  used,  and  soon  motion  pictures  are 
to  be  used  for  illustration  purposes.  The  sealed  question 
box  is  very  popular,  and  the  health  talks  themselves  are 
even  attended  by  the  wives  of  some  of  the  employes  and  by 
the  managers  themselves.  By  means  of  such  conferences 
the  reasons  for  the  establishment  of  the  medical  depart- 
ment and  for  any  compulsory  health  features,  such  as  exam- 
inations, can  be  fully  explained  and  friction  due  to  mis- 
understanding avoided. 

A  list  of  the  Lectures  on  Hygiene  for  one  series  reads  in 
part  as  follows  :  68 

1.  Food  —  Varieties,  tissue-building,  heat,  energy,  fruit,  over- 
eating, auto-intoxication. 

2.  Air  and  Water  —  Why  is  water  necessary  ?  Amount  per  person 
per  day  ;  with  meals ;  in  beverages,  tea,  coffee,  milk  ;  water-borne 
diseases. 

3.  Exercise  —  More  than  making  muscles  hard ;  in  relation  to 
fatigue  and  accident ;  to  occupation  ;  during  hours,  effect  of  exces- 
sive exercise  ;  home  exercise  ;  effect  on  heart,  skin,  digestive  appara- 
tus. 

4.  Hygiene  of  the  Teeth,  Mouth  and  Jaws  —  Diseases  in  the 
mouth,  as  cause  of  various  constitutional  diseases,  rheumatism, 
tonsillitis,  abscess  of  jaw. 

5.  Colds  —  Contagiousness  ;  exposure  ;  drafts  and  other  modes 
of  contracting;  measures  for  avoiding,  outdoor  sleeping,  night  air; 
treatment ;   adenoids  and  tonsils. 

6.  Hygiene  of  the  Home  —  Tuberculosis  and  other  chronic 
diseases.     Children  ;   play  ;    teeth  ;   clothing  ;   food,  etc. 

Further  talks  are  given  on  Medical  and  Surgical  Emer- 
gencies, Goiter,  Alcohol  and  Tobacco,  Venereal  Diseases, 
and  Industrial  Hygiene. 

Health  Bulletins  and  Pamphlets.  —  Bulletins  and  pam- 
phlets on  health  measures  are  frequently  distributed  by  in- 


MEDICAL  CARE  199 

dustrial  concerns  among  their  employes.  The  Eastman 
Kodak  Company,  the  Colorado  Fuel  and  Iron  Company, 
the  Brooklyn  Rapid  Transit  Company,  the  Dennison  Manu- 
facturing Company  and  the  Norton  Company  are  among 
those  who  chose  this  as  one  method  of  health  education,  where 
necessary  printing  these  pamphlets  in  different  languages 
and  illustrating  them  fully.  The  Remy  Electric  Company 
of  Indiana  is  inaugurating  an  educational  campaign,  issuing 
a  series  of  pamphlets  for  their  employes  on  tuberculosis, 
gonorrhea,  syphilis,  rheumatism,  appendicitis,  pneumonia, 
constipation,  infected  tonsils,  neglected  teeth,  eyestrain, 
blood-poisoning,  personal  uncleanliness,  badly  ventilated 
sleeping  rooms,  tobacco  heart,  all  work  and  no  play,  and 
similar  subjects.59 

Educating  the  Foreigner.  —  The  Colorado  Fuel  and  Iron 
Company  faces  a  difficult  problem  in  health  education 
on  account  of  the  forty-two  languages  spoken  by  their  em- 
ployes. Health  bulletins  printed  in  the  different  languages, 
general  and  personal  hygiene  instructions,  health  lectures, 
"movie"  shows,  and  the  visiting  nurse  all  contribute  to 
this  company's  efforts  to  secure  the  intelligent  coopera- 
tion of  the  workers  in  preventing  sickness.40 


CHAPTER  VIII 

METHOD  OF  REMUNERATION 

Importance  of  Wages.  —  To  the  average  employe  the 
money  wages  he  receives  are  as  important  as  the  number 
of  hours  he  works,  the  conditions  under  which  he  works,  or 
even  the  kind  of  work  he  does,  because  wages  determine 
the  comfort  of  his  leisure  hours.  Although  wages  may 
average  only  one  third  of  the  manufacturing  expenses,  they 
remain  one  of  the  important  cost  items  for  all  employers.  To 
the  general  public  wages  are  of  moment,  because  upon  the 
employers'  and  employes'  mutual  satisfaction  with  them 
depends  the  continuity  of  production  and  industrial  peace. 

Wage  Definition.  —  Wages  are  the  compensation  paid 
for  service  at  a  rate  and  at  intervals  agreed  upon  in  advance 
between  employer  and  employe.  Labor  has  gradually 
succeeded  in  establishing  the  concept  of  the  minimum  wage 
as  opposed  to  the  maximum  wage.  The  minimum  wage 
principle  is  now  recognized  in  law.  Laws  fixing  minimum 
wages  for  women  and  minors  in  industry  have  been  incor- 
porated in  state  statutes.  The  War  Labor  Board  in  July, 
1918,  declared  the  "  right  of  all  workers  to  a  living  wage, 
insuring  the  subsistence  of  each  worker  and  his  family  in 
health  and  reasonable  comfort."  This  principle  may  gain 
general  legal  recognition  in  the  near  future.1  Legislation 
in  Europe  and  in  the  United  States,  fixing  the  intervals  at 
which  payment  must  be  made,  whether  by  the  week,  fort- 
night, or  month,  and  also  the  medium  of  payment,  whether 
in  token,  store-order,  check,  scrip,  or  cash,  is  similar  in 
purport  to  minimum  wage  laws.     The  more  frequent  the 

200 


METHOD   OF   REMUNERATION  201 

period  of  payment  and  the  more  easily  exchangeable  the 
medium  of  payment,  the  greater  will  be  the  value  of  the 
wage. 

Scope  of  Wage  Problem.  —  Even  where  wage  legislation 
is  most  complete,  there  remain  wide  variations  in  the  amount, 
medium,  and  time  of  payment  in  vogue  for  different  lines  of 
work  in  the  same  locality  and  for  the  same  lines  of  work  in 
different  localities.  It  is  not  the  purpose  here  to  discuss  the 
problem  of  the  just  division  of  profits  between  capital, 
management,  and  workmen,  but  rather  to  outline  some  of  the 
more  recent  attempts  to  substitute  for  the  arbitrary  rule  of 
custom  the  principles  of  efficiency  and  justice  in  grading  wage 
rates  according  to  occupation  and  skill. 

Fixing  the  Basic  Wage 

Raising  the  Basic  Wage  Rate.  —  Since  the  market  value  of 
any  specific  job  depended  largely  on  three  factors  —  custom, 
supply  and  demand  —  it  followed  that  if  the  labor  supply  was 
large,  the  wage  was  low.  This  led  inevitably  to  a  condition 
in  which  wage  payments  were  not  based  on  costs  of  living, 
but  on  the  ability  to  obtain  labor  at  the  employers'  terms. 
Many  believed  that  rather  than  face  the  dilemma  of  paying 
high  wages  and  losing  profits  it  was  simpler  to  pay  low  wages 
and  suffer  labor  loss  from  high  turnover,  since  a  supply  of 
new  materia]  was  constantly  available.  The  modern  tendency 
is  to  consider  a  high  basic  wage  rate  as  a  means  of  lowering 
production  costs  to  the  extent  thai  it  enables  the  workman 
to  live  properly,  and  that  it  increases  the  worker's  health, 
efficiency  and  interest  in  his  work.  The  old  axiom  "  low 
wages  for  low  costs"  may  eventually  be  reversed  to  read 
"high  wages  for  low  costs."  The  history  of  the  Joseph 
and  Feiss  Company  in  the  five  years,  1910  1915,  in  which 
product  ion  was  increased  12  per  cent,  costs  decreased  about 
10  per  cent,  while  hourly  wages  were  raised   1">  per  cent  and 


202  THE   HUMAN   FACTOR   IN   INDUSTRY 

weekly  wages  37  per  cent,  is  illuminating.  It  is  such  results 
as  these  which  are  attracting  widespread  attention  to-day.2 

Wages  Based  on  the  Cost  of  Living.  —  During  the  war  a 
few  companies  tried  scientifically  to  adjust  wages  to  the 
rising  cost  of  living.  The  Bankers  Trust  Company  of  New 
York,  in  1917,  appointed  a  committee  of  employes  to  investi- 
gate the  rise  in  the  cost  of  living.  This  committee  con- 
cluded, with  Bradstreet's  price  figures  as  a  basis,  that  the 
cost  of  food  and  clothing  was  approximately  80  per  cent 
higher  in  1917  than  in  1915.  Sixty  per  cent  of  an  employe's 
salary  was  assumed  to  be  the  portion  allotted  to  food  and 
clothing,  and  therefore  each  employe  received  an  80  per  cent 
increase  on  60  per  cent  of  his  annual  salary.  A  similar  plan 
was  adopted  for  a  short  period  by  the  Union  and  New  Haven 
Trust  Company,  using  the  index  number  (for  wholesale  prices 
of  foods)  of  the  Times  Annalist  as  a  basis.  It  was  assumed 
that  half  of  the  employe's  budget  was  for  food  and  that  the 
other  half  remained  invariable,  so  that  with  an  advance  of 
1  per  cent  in  the  index  number  one  half  per  cent  should  be 
added  to  salaries.  This  adjustment  was  made  each  month. 
The  plan  was  abandoned  because  other  banks  in  the  vicinity 
failed  to  follow  suit.  In  the  Oneida  Community  each  work- 
man receives  two  envelopes,  one  containing  regular  wages 
and  the  other  a  percentage  bonus  calculated  from  Brad- 
street's  index.  Each  month  for  each  20  points'  change  in  the 
index  a  1  per  cent  advance  or  decline  in  wages  is  made, 
approximating  about  60  per  cent  of  the  actual  increase  in 
living  expenses.  These  examples  have  been  followed  by  the 
Kelley-How  Thomson  Company  of  Duluth,  Minn.,  the 
George  Washington  Company  and  the  Printz-Biederman 
Company  of  Cleveland,  the  Index  Visible,  Inc.,  of  New 
Haven,  some  flour  mills  in  Seattle,  and  the  American  Associa- 
tion of  Labor  Legislation  of  New  York.3 

High  Wages  Alone  Not  the  Solution.  —  Clearly,  however, 
the  payment  of  a  higher  basic  wage  rate  does  not  in  itself  in- 


METHOD   OF   REMUNERATION  203 

crease  efficiency  in  production.  Managers  of  war  industries 
in  the  past  three  years  complained  bitterly  of  the  fact  that 
they  had  to  pay  from  |5.00  to  110.00  or  more  a  day  in  order 
to  secure  workmen,  while  the  very  liberality  of  the  wages  led 
to  a  greatly  increased  rate  of  absenteeism,  because  many 
of  the  workers  chose  to  remain  idle  one  or  two  days  a  week 
on  their  surplus  incomes.  The  payment  of  higher  wages 
appreciably  lowers  production  costs  only  when  efficiency 
is  made  possible  by  enlisting  the  worker's  interest  in  the 
work  itself  or  in  the  success  of  the  business. 

Time  and  Piecework  Wages 

Failure  of  Time  Wages  to  Secure  Efficiency.  —  The  three 
forces  which  impel  men  to  work  are  love  of  the  work  itself, 
desire  for  future  reward,  and  fear  of  the  consequences  of  idle- 
ness. The  first  two  are  constructive  reasons  that  should  be 
fostered.  The  driving  force  in  slave  and  feudal  labor  was 
usually  fear,  and  this  force  has  remained  prominent  evea  with 
the  change  to  indentured  labor  and  then  to  the  wane  system. 
In  machine  production,  where  the  constanl  repetition  of  the 
same  mechanical  task  makes  the  work  distasteful  and  where 
only  minimum  wages  arc  paid,  fear  of  discharge  and  ensuing 
destitution  still  operate  as  an  important  effort-producing 
factor.  A  slow  rate  of  production  and  time-killing  are  the 
frequent  consequences. 

"Soldiering''  with  Piecework  Wages.  —  To  provide 
stimulus  of  a  more  positive  character,  employers,  from  time 
to  time,  have  changed  their  methods  of  wage  payment,  and 
instead  of  buying  a  man'-  time  have  bought  his  product, 
hoping  to  increase  out  put  by  rewarding  the  worker  for  each 
additional  unit  of  effort.  The  piecework  system  theoreti- 
cally rewards  according  to  output  and  automatically  elimi- 
nates t  ime-killing.  ( luriously  enough  it  has  a1  t  imes  actually 
resulted  in  a  new  kind  of  time-killing.     In  changing  from  time 


204  THE   HUMAN   FACTOR   IN    INDUSTRY 

wages  to  piecework  pay  the  employer,  in  order  to  make  it 
attractive  to  his  men,  must  offer  a  rate  of  pay  per  piece  which 
promises  a  reward  greater  than  the  time  wage  in  the  same 
working  period.  But  when  the  change  is  made  output  may 
leap  ahead  and  the  employer,  startled  by  the  wages  he  pays 
some  of  his  men,  frequently  yields  to  the  temptation  to 
cut  rates  in  the  hope  of  retaining  the  new-found  speed  of 
work  and  yet  returning  to  the  wage  level  of  the  community. 
But  such  cuts  in  rates  mean  to  the  employe  more  work  for  less 
pay  and  so,  when  he  is  taught  that  cut  rates  are  the  sequence 
of  piecework,  he  learns  the  trick  of  working  slowly  while  the 
piecework  rates  are  being  set  and  continues  it  afterwards  to 
forestall  a  later  cut.  Public  opinion  in  the  plant  does  not  tol- 
erate the  fast  worker,  and  production  is  retarded.  In  England 
the  "  ca'  canny  "  policy  of  the  trade  unions  before  the  war 
strictly  limited  the  output  of  every  member,  and  makes  effi- 
cient production  impossible  now  under  the  piecework  system. 
The  failure  of  piecework  and  time  wages  to  secure  the 
worker's  full  interest  in  output  has  led  to  newer  systems  of 
profit-sharing,  premium  rates  and  bonuses  for  fast  work  — 
all  variants  of  the  time  and  piecework  methods  of  payment, 
and  combining  the  two.  None  of  them  per  se  solves  the 
problem  of  efficiency,  but  a  brief  review  of  the  various  methods 
which  have  been  used  is  enlightening. 

Premium  or  Bonus  Method  of  Payment 

"  Soldiering"  Prevented  by  Premium  and  Bonus  Systems. 
—  The  premium  and  bonus  systems  of  Halsey,  Rowan, 
Taylor,  Gantt,  and  Emerson  are  newer  methods  by  which 
extra  effort  or  superior  skill  is  rewarded  in  industry.  They 
are  all  devices  to  overcome  the  "  soldiering  "  which  may 
accompany  the  introduction  of  piecework.  Under  the 
premium  or  bonus  method  of  payment  the  employer  can 
promise  permanent  rates  and  still  make  it   comparatively 


METHOD   OF   REMUNERATION  205 

difficult  for  the  employe  to  double  or  triple  his  wages 
after  the  rates  are  set.  By  Halsey's  premium  system,  for 
instance,  the  payment  of  an  hourly  rate  is  guaranteed, 
but  a  task  is  set,  and  if  this  is  exceeded  the  worker  receives 
a  reward  which  is  the  equivalent  of  one  third  or  one  half 
of  the  regular  day  rate.  Thus  any  excess  profits  are  divided 
between  employer  and  employe,  and  no  matter  how  slow  a 
pace  the  workers  set  when  the  task  is  assigned  the  employer 
gets  the  major  portion  of  the  subsequent  increased  output. 

The  Rowan  System.  —  Even  with  the  Halsey  system, 
however,  it  is  possible  for  a  worker  to  increase  his  output 
ten-fold  and  thereby  triple  his  wages,  so  Rowan  has  gone 
further  and  made  it  impossible  for  the  worker  to  double 
his  pay,  however  high  his  speed.  By  the  Rowan  system, 
after  the  task  is  set,  an  increase  in  output  is  rewarded  by 
a  premium  added  to  the  day  rate  which  bears  to  the  day 
rate  the  same  proportion  that  the  time  saved  bears  to  the 
time  allotted,  and  since  this  proportion  is  always  less  than 
one,  the  premium  can  never  equal  the  day  rate.4  The 
apparent  unfairness  of  the  scheme  is  excused  on  the 
basis  that  a  man's  pay  is  higher  under  the  Rowan  system 
than  under  the  Halsey  system  until  he  triples  his  output. 

Objections  to  Premium  Systems.  —  The  manifest  objec- 
tions to  both  systems  are  thai  the  worker  receives  only  a 
fraction  of  the  value  of  the  product,  the  quantity  of  which 
is  increased  by  his  exertions  alone.  The  management,  on 
the  contrary,  not  only  saves  the  Larger  portion  of  the  extra 
wage  payment,  but  in  addition  has  increased  the  total 
output  without  a  corresponding  increase  in  overhead  charges. 
The  value  of  the  systems  Yw<  in  their  introduction  of  the 
principle  that  a  basic  time  rate  should  be  assured  and  piece- 
work rates  be  paid  only  for  the  extra  product  of  superior 
efficiency.  Moreover,  their  introduction  is  comparatively 
simple.  Neither  is,  however,  in  wide  use  in  the  United 
States  at  the  present  time. 


206  THE   HUMAN   FACTOR   IN    INDUSTRY 

The  Differential  Rate  in  Scientific  Management.  — 
"  Scientific  management  "  has  introduced  no  fundamentally 
different  system  of  remuneration.  The  Taylor  differential 
rate  by  which  the  worker  receives  a  low  rate,  of  perhaps  25 
cents  an  hour,  until  he  reaches  100  per  cent  efficiency,  and 
then  35  cents,  etc.,  is  another  and  simpler  premium  system 
which  involves  punishment  for  inefficiency  as  well  as  re- 
ward for  efficiency.  The  Gantt  task  and  bonus  system 
guarantees  the  worker  a  full  day  rate  and  a  certain  per  cent 
premium  for  attaining  the  standard  task,  with  full  pay  and 
bonus  in  proportion  to  any  time  saved  over  and  above  that 
task.  Emerson  felt  that  the  reward  element  should  reach 
those  who  cannot  attain  100  per  cent  efficiency  and  his 
graded  bonus  begins  with  those  who  reach  66.6  per  cent 
efficiency  and  after  100  per  cent  efficiency  is  attained,  the 
bonus  remains  20  per  cent  on  the  time  worker,  plus  the  hourly 
rate  for  all  the  time  saved.  This  extra  payment  is  more 
generous  than  under  any  of  the  other  systems.  As  Emerson 
himself  has  said,  "  An  employer  can  well  afford  a  large  bonus ; 
he  can  well  allow  the  total  wages  saved  as  bonus  to  the  man, 
and  benefit  himself  by  the  increased  efficiency  of  the  plant 
and  the  greatly  reduced  overhead."  5 

The  True  Value  of  Scientific  Management.  —  The  im- 
portance of  scientific  management  does  not  lie  in  any  new 
wage  scale,  but  in  the  effort  which  it  represents  to  improve 
methods  of  work  —  by  standardizing  tools  and  equipment ; 
by  routing  and  scheduling  the  work  to  prevent  idle  men  or 
idle  machines ;  by  eliminating  waste  motion  and  instructing 
the  worker  in  efficient  methods ;  by  selecting  workers  suited 
to  the  specific  job ;  by  the  reorganization  of  the  workshop, 
careful  supervision  and  functional  management ;  and  lastly, 
by  the  method  of  time  study  which  separates  each  process 
into  its  motion  elements  and  finds  the  standard  time  in 
which  each  motion  or  group  of  motions  should  be  completed 
in  order  to  maintain  the  greatest  efficiency.6     It  is  the  time 


METHOD   OF   REMUNERATION  207 

study  which  scientific  managers  consider  their  special  con- 
tribution to  the  settlement  of  the  wage  problem.  By  it 
they  claim  to  determine  scientifically  the  exact  amount  of 
work  which  an  average  man  can  do  in  a  given  time  with 
full  consideration  of  his  health  and  continuing  effectiveness. 
With  this  knowledge  the  fixing  of  wage  rates  becomes  a  com- 
paratively simple  matter  and  not  guess  work.  When  the 
claim,  however,  is  made  that  wages  are  "scientific,"  it  is 
an  overstatement.  It  really  deals  only  with  the  differential 
wage.  The  more  fundamental  consideration  —  the  basic 
wage  for  a  given  operation  at  a  given  time  —  is  not  affected 
by  studies  made.  But  the  setting  of  tasks  solely  on  the 
basis  of  previous  averages  has  been  demonstrated  to  be 
crude  and  the  scientific  management  movement  is  to  be 
credited  with  a  valuable  contribution  by  its  fight  against 
it. 

In  considering  the  value  of  scientific  management  and  the 
results  which  have  been  obtained  through  its  use,  it  should 
always  be  remembered  that  there  is  a  difference  between 
so-called  machine  tasks  which  are  essentially  physical  and 
those  which  require  efforts  of  memory,  judgment,  etc.  A 
serious  weakness  of  scientific  managemenl  lies  in  the  fact 
that  it  frequently  makes  a  machine  out  of  the  workman. 
The  fundamental  principles  of  scientific  management, 
such  as  motion  study,  apply  essentially  to  t;i>ks  which  ap- 
proximate machine  tasks  and  in  which  in  all  likelihood  the 
human  agent  has  been  or  will  be  replaced  by  a  machine. 
The  more  progressive  of  the  exponents  of  these  methods  are 
seriously  trying  to  solve  the  problem  that  specialization 
tends  to  loss  of  interest  ami  initiative  and  also  trying  to 
adapt  them  to  other  than  mechanical  tasks.  The  dis- 
tinctly hopeful  element  is  that  the  more  scientific  manage- 
ment analyzes,  standardizes  and  reduces  the  motion  neces- 
sary to  any  given  task,  the  greater  is  the  likelihood  that 
invention  will  make  this  task  one  for  a  machine  rather  than 


208  THE   HUMAN   FACTOR   IN    INDUSTRY 

for  the  human  being.  To  date,  scientific  management  has 
accomplished  comparatively  little  in  operations  in  which 
machines  or  machine-like  movements  are  not  important 
factors  and  in  which,  as  stated  above,  intelligence,  judg- 
ment, education,  training,  and  knowledge  are  required  and 
in  which  not  only  quantity  but  quality  production  are  de- 
pendent on  acts  of  memory  and  initiative.  Any  scheme  of 
wage  payment,  therefore,  must  take  into  consideration  these 
differences  in  native  ability  if  it  is  to  be  generally  applicable. 

Salaried  and  Office  Workers 

In  work  in  which  efficiency  is  not  easily  measured  by 
output,  remuneration  takes  the  form  of  a  salary,  paid  peri- 
odically by  week,  month,  or  quarter,  and  graded  accord- 
ing to  prevailing  rates,  to  the  quality  of  service  rendered, 
and  to  the  length  of  service.  To  stimulate  the  worker 
to  make  his  best  effort  employers  have  recourse  to  either 
periodic  or  irregular  increases  in  salary.  The  difficulty  with 
the  periodic  increase  from  the  productive  standpoint  is  that 
it  appears  to  the  employe  as  part  of  the  routine  business 
and  not  a  reward  for  individual  efficiency.  When  a  clerk 
receives  a  raise  unexpectedly  the  encouragement  is  great. 
The  most  satisfactory  method  is  to  reward  individually  but 
systematically  by  following  up  the  records  of  all  clerks, 
and  consulting  the  office  manager  within  two  or  three 
months  after  each  change  of  position  or  raise,  upon  the 
advisability  of  a  further  increase  in  salary.  The  various 
means  of  rewarding  efficiency  by  bonuses  and  promotions 
which  are  in  addition  to  regular  wages  and  serve  to  stimu- 
late the  worker  to  fresh  interest  and  exertion,  are  as 
applicable  to  salaried  workers  as  to  pieceworkers.  It  is 
probable  that  an  increasing  number  of  positions  for  which 
salary  is  now  paid  will  become  sufficiently  standardized 
to  allow  payment  by  actual  output. 


METHOD    OF    REMUNERATION  209 

Work  Stimuli  Other  than  Regular  Wages 

Money  Reward  a  Substitute  for  Interest  in  Work.  — 
Many  employers  assume  that  efficient  work  can  be  secured 
only  by  sufficient  threats  or  reward.  There  is  no  doubt 
that  reward  is  a  more  effective  stimulus  to  good  work  than 
fear  of  punishment,  but  reward  is  also  a  less  effective  stimu- 
lus than  interest.  One  scientific  manager  says:  "We 
have  been  able  to  obtain  splendid  results  without  resorting 
to  a  system  of  immediate  money  rewards,"  and  considers 
it  wise  to  pay  a  liberal  wage  so  that  the  workers  "  can  forget 
this  economic  pressure  and  do  good  work  because  of  the  joy 
tli.it  comes  from  the  consciousness  of  work  well  done."  s 
But  most  processes  in  machine  production  preclude  the 
worker's  joy  in  his  work,  and  we  must  develop  other  means 
of  compensating  him  for  the  monotony  of  the  actual 
operation  in  which  he  is  engaged  and  of  obtaining  efficient 
production  through  increased  interest. 

Efficiency  Affected  by  Attendance,  Accidents,  and  Co- 
operation. —  Effective  production  depends  not  only  on  the 
quality  and  quantity  of  product  which  an  employe  can  turn 
out  in  a  given  time  but  on  total  output  per  employe  during 
a  long  period.  This  continuous  output  is  affected  by  regu- 
larity of  attendance,  carefulness  in  avoiding  accidents,  and 
cooperation  between  the  management  and  employes. 

Futility  of  Fines.  —  In  the  past,  fines  for  spoiled  work, 
bad  time-keeping  and  misconduct  have  been  customary  in 
industry  but  usually  ineffective.  General  experience  has 
shown  that  they  are  not  reformative  and  that  when  the  fine 
is  paid  the  worker  is  able  to  dismiss  the  error  from  his  mind 
entirely.  The  Cadbury  Works  in  England  abolished  lines 
in  1898  and  substituted,  even  against  the  wishes  of  the 
employes,  a  system  of  individual  records  with  BUSpensioo 
or  dismissal  as  the  ultimate  result  of  a  bad  record.  From 
1899  to  1910,  with  an  increase  in  the  total  force  of  50  per 
p 


210  THE    HUMAN   FACTOR    IN    INDUSTRY 

cent,  in  the  women's  departments  the  percentage  of  of- 
fenders recorded  decreased  from  11.37  per  cent  to  2.22  per 
cent,  while  bad  conduct  has  been  practically  eliminated.7 
The  experience  of  the  Metropolitan  Life  Insurance  Company- 
corroborates  the  uselessness  of  fines  in  its  tardiness  records 
for  the  three  years,  1914-1916,  inclusive.  In  1914,  when  a 
system  of  lateness  fines  was  in  operation,  the  average  tardi- 
ness per  clerk  per  month  was  .682,  and  in  1916,  when  these 
fines  had  been  abolished  and  a  banner  competition  substi- 
tuted, the  average  tardiness  was  .472. 8 

Attendance  Bonus.  —  The  trend  to-day  is  away  from  pun- 
ishments and  towards  rewards  in  the  shape  of  bonuses  for 
good  attendance,  conduct,  and  quality  of  work.  A  com- 
bined attendance  and  good  workmanship  bonus  is  paid  by 
the  Fayette  R.  Plumb  Company,  where  every  workman 
with  a  perfect  weekly  time  card  receives  a  bonus  of  5  per 
cent  of  his  weekly  pay.  Time  lost  when  sent  home  by  the 
foreman  or  due  to  an  accident  occurring  in  the  factory  is 
excused.  Another  bonus  of  5  per  cent  is  paid  for  main- 
taining a  good  standard  of  workmanship,  and  this  is  with- 
drawn only  in  extreme  cases.  The  combined  bonus  is 
credited  from  the  day  that  the  workman  starts  work,  but  is 
not  paid  until  he  has  been  with  the  company  three  months, 
when  he  receives  the  accumulated  amount.  If  an  employe 
loses  time  for  three  successive  weeks  without  excuse  he 
forfeits  his  rights  to  both  bonuses  —  until  he  shows  a  per- 
fect time-card  for  one  week.  If  this  delinquency  should 
continue  for  long  his  dismissal  is  considered.9  It  has  been 
found  advisable  in  many  instances  to  pay  all  forms  of 
bonuses  in  separate  envelopes  in  order  that  the  distinction 
between  salary  and  special  bonus  may  not  come  to  be  con- 
sidered as  regular  wages. 

Accident  Bonus.  —  Money  rewards  have  been  found 
valuable  in  keeping  down  accidents  in  the  two  plants  of  the 
Semet-Solvay  Company  of  Alabama.     The  premium  sys- 


METHOD    OF   REMUNERATION  211 

tem  of  wage  payment  induced  the  men  to  increase  speed  with 
a  consequent  increased  accident  rate.  To  offset  the  effect 
of  this,  a  bonus  of  10  per  cent  on  the  worker's  wages  was 
offered  if  he  had  no  time-losing  accident  during  the  month. 
In  six  months'  time  the  number  of  lost  hours,  which  had  run 
from  one  hundred  to  four  hundred  per  month,  was  reduced 
to  ninety  per  month  in  one  plant,  while  in  the  other  no 
accidents  were  reported  at  the  dressing  station  in  two 
months.10 

Service  Bonus.  —  The  John  B.  Stetson  Company  finds 
that  a  bonus  for  yearly  service  is  an  important  factor  in 
stabilizing  their  force.  In  1897  only  35  per  cent  of  the  hat 
sizers  worked  steadily.  A  bonus  of  5  per  cent  was  offered  if 
a  worker  remained  in  the  company's  employ  from  (  lnistmas 
to  Christmas  and  as  a  result  50  per  cent  of  the  men  worked 
for  the  entire  year.  This  bonus  was  progressively  raised 
from  5  per  cent  to  10,  15,  and  finally  20  per  cent  and  the 
number  of  steady  workers  increased  proportionately  each 
time,  rising  from  50  per  cent  to  67,  to  88,  and,  since  1903, 
when  the  bonus  was  20  per  cent,  to  100  per  cent.  The 
bonus  period  ends  on  the  31st  of  October,  but  the  bonus  is 
not  paid  until  Christmas  and  if  the  employe  leaves  before 
that  time  he  forfeits  it." 

Quality  of  Work  Bonus  or  Point  System.  —  The  managers 
of  the  Spanish  River  Pulp  and  Paper  Mills  assert  thai  a 
bonus  paid  on  increased  productivity  is  based  on  bad  psy- 
chology in  that  it  emphasizes  the  unattractiveness  of  the 
work  itself  and  stimulates  quantitative  rather  than  quali- 
tative production.  Ten  years'  experience  with  a  "quality 
progress  record,"  by  which  each  worker  is  rated  publicly 
and  at  regular  intervals  by  the  quality  of  his  work,  has  re- 
sulted in  greatly  lowering  the  cost  of  production  for  this 
company.12 

A  conspicuous  example  of  the  bonus-for-quality-of-work 

or  Point  System   is   that    of   t he  Willys-(  herland  Company, 


212  THE    HUMAN   FACTOR    IN    INDUSTRY 

where  everything  except  output  is  considered  in  awarding 
bonuses  to  their  file  clerks.     Points  are  given  as  follows : 

For  perfect  appearance 10  points 

"         "        attendance 10 

"         "        punctuality 10 

"         "         accuracy  50 

"        "        promptness  in  filing 10 

"         "        promptness  in  filling  requisitions     ....  10 

A  bonus  of  $1.00  is  paid  monthly  for  every  point  which  a 
record  averages  above  90.  The  effect  of  this  bonus  was  to 
raise  the  efficiency  of  the  filing  clerks  from  65  per  cent  in 
January,  1917,  to  90  per  cent  in  December,  1917. 13 

The  Stimulus  of  Hope  of  Promotion.  —  One  of  the  most 
stimulating  efficiency  factors  is  the  worker's  hope  of  pro- 
motion to  more  difficult  and  interesting  work.  It  is  this 
phase  of  the  problem  of  wage  payment  which  has  been 
emphasized  by  the  Westinghouse  Electric  and  Manufactur- 
ing Company  of  Pittsburgh.  In  a  plant  employing  20,000 
operatives,  all  the  positions  were  classified  and  a  list  of  over 
400  distinct  occupations  was  reduced  to  one  of  170  standard 
occupations,  with  the  rates  paid  in  each  and  the  number 
of  men  in  each,  tabulated  for  every  department.  The 
positions  were  then  grouped  in  Classes  A,  B,  C,  D,  and  E  ; 
Class  A  representing  the  highest  grade  of  production  or 
tool  work,  etc. ;  Class  B,  the  accurate  or  heavy  work  re- 
quiring less  knowledge  or  skill,  etc. ;  and  so  on  down 
the  line,  with  Class  E  representing  the  unskilled  work, 
requiring  little  or  no  training.  The  rates  of  pay  in  each 
class  are  arranged  to  allow  variations  for  length  of  service 
and  efficiency.  When  an  employe  reaches  the  maximum 
for  a  given  grade,  promotion  to  an  occupation  of  higher 
value  is  facilitated.14 

Systematic  promotions  of  this  sort  stimulate  the  workers 
to  efficient  service,  and  uniform  rates  of  pay  eliminate  much 
discontent  and  friction.     A  money  reward  thus  combined 


METHOD   OF   REMUNERATION  213 

with  a  realizable  hope  of  promotion  is  a  much  greater  stim- 
ulus to  efficiency  than  the  money  reward  alone.  It  is  note- 
worthy in  this  respect  that  scientific  management  greatly 
increases  the  proportion  of  executives  and  foremen  in  the 
working  force  and  thereby  the  chance  for  promotion. 

Executives'  Savings  Bonus.  —  Various  attempts  have 
been  made  to  award  a  bonus  to  foremen  and  heads  of  de- 
partments for  increased  efficiency  within  their  own  depart- 
ments. In  the  executives'  profit-sharing  schemes  the  di- 
vision in  savings  is  ordinarily  made  indiscriminately  to  all 
the  executives  and  not  according  to  their  individual  con- 
tributions. An  industrial  engineer  in  the  employ  of  the 
Hupp  Motor  Car  Corporation  outlines  a  better  system  of 
paying  bonuses  for  increased  efficiency  to  foremen  in  an 
automobile  plant  that  is  capable  of  ready  adaptation  to  dif- 
ferent industries.  The  bonus  is  paid  monthly  on  a  basis 
of  savings  in  departmental  expenses.  The  items  which  are 
included  in  the  running  expenses  of  the  department  and  are, 
therefore,  subject  to  the  control  of  the  foremen,  are :  wages 
and  salaries  to  employes,  labor  turnover,  overtime  work, 
and  departmental  supplies.  The  bonus  is  paid  on  a  ratio 
of  these  expenses  to  the  total  net  sales  for  the  month.  By  an 
analysis  of  previous  expenses  the  100  per  cent  efficiency 
mark  can  be  estimated.  The  bonus  begins  at  an  efficiency 
of  80  per  cent  and  equals  20  per  cent  of  the  foreman's 
monthly  wage  at  100  per  cent  efficiency.16 

Suggestion  Systems  and  Bonuses.  —  A  common  and 
popular  form  of  bonus  is  thai  paid  for  suggest  ions  from 
employes.  Encouraging  suggestions  as  to  possible  im- 
provements in  methods  of  work  are  one  way  of  enlisting  the 
worker's  interest  in  his  job,  and  a  method  appreciated  by 
such  plants  as  the  National  Cash  Register  Company,  the 
Eastman  Kodak  Company  and  the  Commonwealth  Edi- 
son Company,  among  a  great  many  others.  One  of  the 
most  complete  systems  is  that   of  the  Kodak  Park  Works, 


214  THE    HUMAN    FACTOR    IN    INDUSTRY 

where  about  3000  men  and  1500  women  are  employed.16 
Blanks  and  mail  boxes  are  placed  at  convenient  points  about 
the  plant.  The  employe  fills  out  his  blank  and  detaches 
and  keeps  a  numbered  stub  on  which  he  copies  his  sugges- 
tion for  future  reference.  If  a  drawing  is  necessary  to  illus- 
trate this  idea  he  may  have  the  assistance  of  one  of  the 
company's  draftsmen.  The  slips  are  collected  at  intervals 
during  the  day  and  taken  to  the  manager's  office,  where 
they  are  immediately  stamped  with  the  date  of  their  re- 
ceipt, so  that  there  may  be  no  difficulty  in  establishing  the 
priority  of  similar  suggestions.  Their  receipt  is  acknowl- 
edged by  a  special  blank  sent  to  the  employe.  Each  sug- 
gestion is  passed  upon  by  the  superintendent  of  the  depart- 
ment concerned,  and  if  accepted  and  indorsed  by  the  manager 
the  employe  is  so  notified.  At  the  end  of  each  month  a 
committee  made  up  of  the  department  superintendents 
awards  prizes.  In  order  sufficiently  to  advertise  the  sys- 
tem, a  descriptive  list  of  all  the  accepted  suggestions  is 
published  in  the  plant  bulletin.  The  awards  used  to  be 
made  every  three  months,  but  their  more  frequent  payment 
has  proved  a  greater  stimulus. 

The  suggestions  are  divided  into  five  groups,  and  a  mini- 
mum award  for  each  group  assigned,  as  follows :  (1)  im- 
provements in  products,  $5.00;  (2)  reductions  in  costs, 
$4.00;  (3)  improvements  in  manufacturing  methods,  $3.00; 
(4)  reduction  in  accident  and  fire  hazards,  $2.00 ;  (5)  conven- 
iences, $1.00.  As  much  as  $1000  has  been  awarded  an  em- 
ploye for  an  especially  good  idea. 

The  foremen  are  not  excluded  from  the  competition. 
Some  of  the  foremen  compete  in  the  regular  way.  Other 
non-participating  foremen's  prizes  are  also  awarded  to  men 
who  have  from  six  to  twenty-five  employes  under  them, 
and  those  having  more  than  twenty-five  under  them.  Every 
four  months  two  prizes,  the  first  being  $25.00  and  the  second 
$10.00,  are  awarded  to  the  foremen  having  the  greatest 


METHOD    OF    KKMUNE RATION  215 

number  of  adopted  suggestions  coining  from  the  men  under 
them,  and  the  same  prizes  arc  awarded  to  the  foremen  from 
whose  men  have  come  those  of  the  greatest  value.  This 
encourages  cooperation  between  the  foremen  and  the  men 
under  them  and  increases  the  value  of  the  suggestions. 
The  average  number  of  adopted  suggestions  in  this  plant 
amounts  to  about  40  or  45  per  cent  of  all  those  handed  in. 
In  L916  this  number  was  2300. 

Suggestion  Blanks.  —  In  the  camera  works  of  the  East- 
man Kodak  Company  the  system  is  improved  upon  in  some 
details.  The  chairman  of  the  suggestions  committee  is 
head  of  five  special  committees  made  up  of  department 
heads,  each  of  whom  looks  after  one  of  the  groups  of  sug- 
gestions enumerated  above.  The  blank  is  provided  with 
a  stub  on  which  the  employe  writes  bis  name,  which  does  not 
appear  on  the  blank  itself.  The  secretary  of  the  general 
committee  detaches  the  stub  with  the  name  of  the  employe 
before  submitting  the  suggestion  to  the  right  committee, 
and  in  this  way  all  danger  of  favoritism  in  adopting  and 
awarding  prizes  is  eliminated. 

Good  Conduct  Bonus.  —  A  unique  form  of  bonus  is  the 
"  profit-sharing  "  scheme  of  the  Ford  Motor  Company,  which 
is  actually  a  bonus-for-good-conduct  system.  Under  the 
original  rates  a  minimum  wage  of  34  cents  an  hour  was  paid, 
and  in  addition  a  minimum  of  28!  cents  an  hour  is  given  as  a 
share  of  "  profits  "  to  a  man  who  is, 

(1)  married  and  living  with  and  taking  good  care  of  his  family, 
or 

(2)  single  and  over  22  years  of  age  and  of  pro\  en  1  hrifty  habits,  or 

(3)  under  22  years  of  age  and  the  Bole  support  of  some  blood 
relative, 

and  to  all  women  who  are  the  sole  support  of  some  blood 
relative.  In  L916,  00  per  cent  of  the  force  were  receiving 
the  extra   remuneration   of  2S\   cents  an  hour.     Bui   this 


216  THE    HUMAN    FACTOR    IN    INDUSTRY 

scheme  is  of  doubtful  social  value.  It  necessitates  a  system 
of  investigation.  Whatever  the  results  claimed  in  regard  to 
conduct,  it  may  be  questioned  whether  it  would  not  have 
been  seriously  resented  by  the  employes  had  the  remuneration 
not  been  far  in  excess  of  any  contemporary  wage  outside.17 


Profit-sharing 

Early  Profit-sharing.  —  One  of  the  first  proposed  solu- 
tions of  the  wage  problem  was  profit-sharing.  As  early  as 
1811  the  Imprimerie  Nationale  of  Paris  distributed  bonuses 
of  varying  percentages  at  intervals  among  its  employes. 
In  1842  the  Maison  Leclaire  adopted  profit-sharing,  and  in 
its  final  form  the  system  divided  all  profits  over  and  above 
a  5  per  cent  interest  on  capital  and  the  small  salaries  paid 
to  the  two  managing  partners,  into  four  parts,  one  for  the 
managing  partners  themselves,  one  for  the  Mutual  Aid 
Society,  and  two  for  the  employes  as  dividends  on  wages.18 
This  plan  is  still  successfully  in  operation  in  the  same  firm, 
which  has  now  the  name  of  Redouly  et  Cie.  In  the  eighties 
the  profit-sharing  movement  became  very  general  in  France, 
Germany,  England,  and  the  United  States.  In  1889  thirty- 
four  establishments  in  this  country  had  adopted  some  form 
of  profit-sharing.19  Its  advocates  claimed  that  by  sharing 
profits  the  employes  realized  they  were  working  for  them- 
selves and  were  therefore  vitally  interested  in  the  industry's 
efficiency. 

Its  Defects.  —  The  chief  difficulty  with  the  pioneer  profit- 
sharing  scheme  lay,  however,  in  the  fact  that  the  percentage 
of  profits  shared  with  the  employes,  even  if  stated  in  advance, 
could  not  usually  be  guaranteed,  while  its  payment  was  too 
long  deferred  to  serve  as  an  active  stimulus  from  day  to 
day.  Moreover,  the  employes  gained  or  lost  with  the 
fluctuating  efficiency  of  the  managerial  staff,  over  which  they 
had  no  control.     Ninety-four  per  cent  of  all  business  enter- 


METHOD    OF    REMUNERATION  217 

prises  fail,  and  this  fact  renders  profit-sharing  of  dubious 
value  to  the  rank  and  file  of  employes,  even  if,  as  is  usually 
the  case,  employes  are  not  subject  to  loss-sharing,  asjwell  as 
profit-sharing. 

Gain  Sharing. — The  "gain  sharing"  proposed  by  Mr. 
Henry  R.  Towne  in  1889,  at  a  meeting  of  the  American  So- 
ciety of  Mechanical  Engineers,  attempted  to  remedy  these 
defects  by  separating  the  costs  over  which  the  employes 
had  some  control  from  the  other  costs  of  the  plant.  The 
savings  in  these  costs  within  a  given  period  were  divided 
among  them.4  But  beyond  the  brief  period  of  a  few  months 
or  years  agreed  upon,  the  employe  had  no  assurance  of  the 
permanence  of  the  scheme,  and  the  same  undesirable  ele- 
ment of  deferment  in  reward  remained  an  obstacle  to  its 
success. 

Possible  Application  of  Profit-sharing.  —  For  many 
years  profit-sharing  steadily  lost  popularity  and  was  super- 
seded by  newer  and  more  tangible  methods  of  rewarding 
efficiency.  Within  the  last  few  years,  however,  the  move- 
ment has  claimed  new  adherents,  and  in  response  to  the 
revived  interest  in  the  subject  five  prominent  business 
and  professional  men 20  —  the  Messrs.  Burritt,  Dennison, 
Gay,  Heilman,  and  Kendall  —  have  published  jointly  a 
valuable  appraisal  of  "  Profit-sharing." 

In  the  first  place,  the  authors  disclaim  profit-sharing  as  a 
panacea  for  labor  troubles  or  a  substitute  for  good  manage- 
ment. Profit-sharing  is  only  of  value  when  it  is  acceptable 
and  attractive  to  the  employes,  which  means  that  it  can- 
not be  a  substitute  for  a  fair  regular  wage,  nor  should  it 
interfere  with  the  collective  bargain  and  strike,  or  with  the 
employe's  ability  to  change  employment  without  financial 
loss.  Further,  its  effectiveness  varies  inversely  with  the 
size  of  the  group  to  which  it  applies  and  directly  with  the 
rank  of  the  workers,  and  is  useful  only  when  individual 
output  cannot  be  measured.      In   large   industries,   where 


218  THE   HUMAN   FACTOR   IN   INDUSTRY 

work  is  specialized  and  easily  standardized,  other  methods 
of  rewarding  superior  efficiency  are  easy  to  apply  and  more 
fruitful  in  results.  For  that  reason  profit-sharing  is  at  best 
only  meant  for  a  small  proportion  of  all  industrial  workers. 
When  individual  efficiency  is  difficult  to  rate,  as  with  a  man- 
aging force,  in  gang  work,  or  in  certain  industries,  such  as 
the  gas  industry,  where  the  volume  of  gas  produced  alone 
registers  the  aggregate  efficiency  of  all  the  various  workers, 
profit-sharing  can  be  a  stimulating  and  effective  way  of 
obtaining  the  workers'  cooperation.  This  is  also  true  where 
close  supervision  of  the  worker  is  impossible,  as  with  travel- 
ing salesmen  and,  in  some  cases,  with  delivery  men.  But 
the  group  to  which  it  applies  must  be  small  enough  for 
each  member  to  realize  the  importance  of  his  own  efforts 
in  augmenting  profits. 

Combined  Profit-sharing  and  Savings  Scheme.  —  A 
voluntary  combined  profit-sharing  and  savings  scheme  intro- 
duced by  Sears  Roebuck  and  Company  in  1916  received 
indorsement  by  the  Typographical  Union  men  and  the 
pressmen  of  the  company  in  1918,21  and  has  attracted 
wide  attention.  This  "  Employes'  Savings  and  Profit- 
sharing  Pension  Fund  "  is  open  to  every  employe  after 
three  years  of  service,  and  in  the  first  eighteen  months  after 
its  introduction  enlisted  91  per  cent  of  the  eligible  employes. 
During  that  time,  on  a  basis  of  5  per  cent  of  their  salaries, 
no  one  being  allowed  to  deposit  more  than  $150  per  annum, 
the  deposits  equaled  $439,500.  In  the  same  period  the 
company  contributed  $1,318,712.97,  its  share  being  based 
on  5  per  cent  of  its  profits.  The  fund  is  invested  in  com- 
pany stock  and  shares  are  placed  to  the  credit  of  participat- 
ing employes  in  proportion  to  the  amounts  deposited  by 
each  during  the  year.  Membership  in  the  Fund  is  volun- 
tary, and  at  any  time  the  employe  may  withdraw  his  total 
cash  deposits  with  5  per  cent  interest  compounded  semi- 
annually, while  after  ten  years  of  service  he  may  withdraw 


METHOD    OF    REMUNERATION  219 

all  money  and  securities  credited  to  his  account,  including 
the  company's  contributions.  The  same  privilege  is  granted 
to  women,  after  five  years  of  service,  who  arc  leaving  to  be 
married. 

Shares  for  Group  Work.  —  An  interesting  variation  of 
profit-sharing  applied  to  small  groups  of  operatives  is  in 
force  in  the  Cadbury  Works  in  England  for  groups  or  gang 
work  where  piecework  rates  cannot  be  applied.  Shares 
in  the  total  earnings  of  each  group  arc  allotted  to  the  indi- 
vidual girls  according  to  age  and  experience.  Schedules 
are  arranged  giving  the  number  of  shares  to  which  a  girl  is 
entitled  for  each  age  year  from  13  to  21,  and  for  each  service 
year  from  1  to  8,  the  increase  from  year  to  year  in  both  cases 
being  the  same.  Thus  in  the  matter  of  pay  one  year's 
service  is  the  equivalent  of  fourteen  years  of  age,  three 
years  of  service  the  equivalent  of  sixteen  years  of  age,  etc.7 
Thus  a  girl  who  is  fifteen,  with  one  year's  service  to  her  credit, 
will  earn  the  same  as  a  new  girl,  sixteen  years  of  age. 
Neither  age  nor  experience  is  a  measure  of  efficiency,  but  such 
a  share  system  is  probably  approximately  just. 

Time  and  Medium  of  Paying  Off 

Desirable  Frequency  of  Payment.  —  The  employer  has 
usually  small  leeway  in  the  matter  of  the  frequency  of 
wage  payment.  Two  thirds  of  the  States  in  this  country 
have  laws  confining  the  pay  period  to  the  week,  fortnight, 
or  month  and  most  of  these  bring  it  within  the  semi-monthly 
period.  In  the  absence  of  law,  custom  has  established  the 
weekly  pay-day  for  the  rank  and  file  of  employes  in  the  in- 
dustrial world.  The  frequent  payment  is,  of  course,  to  tin- 
advantage  of  the  employe  in  that  it  obviates  the  expense 
of  credit,  and  although  it  means  the  additional  cosi  to  the 
employer  of  extra  pay-roll  clerks,  if  is  usually  the  most  satis- 
factory method.     Beyond  the  stipulation  as  to  periods  of 


220  THE   HUMAN   FACTOR   IN   INDUSTRY 

payment,  several  States  require  that  wages  be  paid  within 
work  hours  in  order  to  save  the  time  of  the  employe.  The 
far-seeing  employer  will  prefer  to  devise  some  method  of 
facilitating  the  distribution  of  wages  within  the  work  hours 
rather  than  tolerate  the  friction  which  accompanies  the 
"  after  hours  "  payment. 

Legal  Tender  the  Desirable  Medium.  —  According  to 
the  common  law,  unless  expressly  contracted  otherwise, 
legal  tender  is  the  required  medium  and  contracts  to  the 
contrary  are  becoming  obsolete.  The  store  order,  however, 
still  exists,  particularly  where  the  monthly  payment  is  made. 
This  has  been  severely  and  justly  criticized  because  it  re- 
stricts the  wage  earner's  liberty  and  often  places  him  at  the 
mercy  of  the  unscrupulous  employer  who  can  reduce  wages 
by  charging  comparatively  high  prices  for  supplies  bought 
on  credit.  Some  States  prohibit  the  company  store  en- 
tirely, some  regulate  the  prices  and  quality  of  goods  sold 
in  such  stores,  and  others  legislate  against  the  use  of  coer- 
cion in  regard  to  trading  with  company  stores.  Abuses  seem 
inevitable  wherever  the  employer  pays  on  such  a  credit  basis. 
The  situation  in  the  "  one  industry  town  "  is  frequently 
difficult  because  facilities  for  retail  buying  must  be  pro- 
vided and  the  corporation  is  sometimes  the  only  agency. 
Here,  however,  a  cooperative  store  and  the  cash  or  check 
medium  of  payment  may  solve  the  problem. 

The  Check  vs.  the  Cash.  —  It  is  easy  to  dispose  of  the 
company  store  and  credit  or  "  truck  "  system  of  payment 
on  the  ground  of  justice,  but  less  easy  to  determine  the 
relative  value  of  the  check  or  cash  payment.  Employers 
prefer  the  check  because  it  provides  a  simple  receipt  sys- 
tem without  the  difficulty  of  handling  large  funds.  The 
employe  objects  to  the  check  because  it  involves  double 
labor  in  procuring  his  wages.  Moreover,  the  wage  earner 
rarely  has  a  bank  account  and  is  apt  to  cash  his  check 
at    a    near-by  store   and  suffer  the  discount   that  is  fre- 


METHOD   OF   REMUNERATION  221 

quently  charged  rather  than  go  further  afield  in  search  of 
a  bank. 

The  Self -identifying  Check.  —  New  York  City  has  found 
a  new  method  of  check  payment  for  city  employes  which 
seems  to  have  most  of  the  advantages  of  cash  payment 
and  few  of  its  drawbacks.22  It  consists  in  the  use  of  the 
self-identifying  checks,  similar  to  the  express  company  check 
used  by  travelers.  The  employe  must  sign  his  name  in  the 
left-hand  corner  of  the  check  in  a  space  provided,  in  the 
presence  of  the  pay-roll  clerk.  On  cashing  it  at  a  store  or 
bank  he  again  indorses  the  check.  Two  hundred  banks 
in  New  York  City  agreed  to  recognize  these  checks  at  par 
value  and  consequently  even  the  small  stores  accept  these 
readily  negotiable  checks  without  discount. 

The  cash  payment  remains  the  more  popular  one  with 
all  employes  and  the  need  is  to  find  the  most  rapid  and  safe 
way  of  distributing  the  cash.  Usually  the  employe  goes  to 
the  pay  office,  receives  his  pay  envelope  and  signs  a  receipt. 
This  takes  considerable  time.  Many  larger  concerns  in- 
stead distribute  the  pay  envelopes  to  their  employes  at 
their  work*.  The  pay  envelope  of  the  Metropolitan  Life 
Insurance  Company  is  unique.  The  employe  signs  in  a 
space  provided  on  the  envelope  face  and  stamped  with  a 
date.  One  envelope  is  used  for  twelve  weeks  so  that  the 
identification  of  signatures  is  easy,  the  bother  of  innumer- 
able pay  slips  is  done  away  with,  and  the  face  of  the  enve- 
lope alone  is  preserved  as  a  record  of  wages  received. 

Deferred  Payment. — The  problem  of  computing  pay 
rolls  and  the  importance  to  the  employment  department 
of  obtaining  interviews  with  those  who  are  Leaving  make 
it  frequently  necessary  that  the  pay  week  and  the  pay  day 
should  not  coincide,  but  that  the  pay  day  be  from  three 
days  to  a  week  later  than  the  pay  week.  An  example  of 
such  a  plan  is:  a  workman  who  begins  work  on  Tuesday 
may  receive  his  pay  a  week  from  the  following  Thursday. 


222  THE   HUMAN   FACTOR   IN   INDUSTRY 

If  he  should  quit  without  notice  on  the  Friday  after,  he 
forfeits  his  pay  from  Monday  to  Thursday  unless  he  re- 
turns to  the  pay  office  on  some  pay  day.  If  a  close  record 
of  absentees  is  kept  in  the  pay  office  and  the  pay  envelopes 
of  absent  employes  are  checked,  it  is  readily  possible  to  ob- 
tain an  interview  with  the  employe  who  has  quit  and  ascer- 
tain the  cause  of  his  leaving. 

With  the  Westinghouse  Electric  and  Manufacturing 
Company  an  employe  may  receive  his  full  pay  on  the  day 
he  quits  if  he  gives  three  days'  notice  and  this  also  provides 
the  employment  department  with  the  opportunity  for  an 
interview.23 

It  may  be  feasible  to  pay  the  worker  in  full  the  day  he  quits, 
even  without  notice,  provided  he  is  sent  to  the  employ- 
ment department  for  an  interview  and  must  present  a  re- 
lease slip  from  that  department  before  his  full  pay  is  given 
him.  This  function  of  the  pay-roll  department  —  to  act  as 
a  connecting  link  between  the  employment  manager  and  the 
discharged  or  quitting  employe  —  is  absolutely  essential 
to  the  success  of  any  efforts  made  to  stabilize  the  force. 
This  may  make  it  possible,  too,  to  arrange  for  an  advance 
or  loan  in  instances  where  the  employe  is  leaving  solely  in 
order  to  obtain  immediate  funds. 

Cooperation  of  Employers  and  Employes 

Organized  Labor  and  Wages:  Scientific  Management 
and  Profit-sharing.  —  It  is  the  question  of  wages  and  the 
division  of  profit  which  has  brought  the  labor  movement 
into  conscious  existence  and  no  employer  can  hope  now  to 
solve  the  problems  of  labor  remuneration  without  careful 
consideration  of  the  worker's  point  of  view.  Even  in  the 
period  between  1881  and  1900,  when  the  trade  unions  were 
struggling  for  recognition,  55  per  cent  of  all  strikes  and 
lockouts  were  caused  by  a  dispute  over  wages  and  over  half 


METHOD   OF   REMUNERATION  223 

of  these  strikes  were  successful.24  The  National  Indus- 
trial Conference  Board  classified  strikes  occurring  from 
April  to  October,  1917,  according  to  demands,  and  76.5  per 
cent  of  them  all  were  for  a  raise  in  wages,  and  75.9  per  cent 
of  these  were  wholly  or  partially  successful.25 

It  is  not  only  the  basic  wage  rate  which  concerns  the 
workers.  There  has  been  opposition  on  the  part  of 
organized  labor  to  the  introduction  of  scientific  manage- 
ment and  to  profit-sharing.  Workers  and  labor  leaders 
almost  uniformly  object  to  scientific  management  on  the 
basis  that  it  means  a  greater  degree  of  specialization  than 
at  present,  with  greater  strain  on  the  worker,  and  gives 
the  emplo3rer  more  complete  power  over  the  workers 
than  before,  because  it  deprives  the  worker  of  all  general 
knowledge  of  the  trade,  a  knowledge  which  in  the  past 
has  been  the  capital  of  the  skilled  craftsman.  The  ob- 
jection to  most  profit-sharing  schemes  made  by  labor  is 
that  it  means  the  deferred  and  uncertain  payment  of  wages 
due. 

Workshop  Committee  the  Possible  Solution.  —  The  so- 
called  "  workshop  committee  "  movement,  in  its  attempt 
to  bring  employer  and  employe  together  in  amicable  dis- 
cussion of  the  terms  of  employment  at  regular  intervals, 
appears  to  many  manufacturers  the  solution  of  industrial 
unrest.  Cooperation  of  this  sort  has  permitted  the  success- 
ful introduction  of  both  scientific  management  and  profit- 
sharing  in  one  industry. 

Scientific  Management  Accepted  by  Shop  Committee.  — 
The  Packard  Piano  Company  found  its  265  employes  firmly 
opposed  to  the  introduction  of  scientific  managemenl  until 
a  series  of  weekly  and  occasionally  bi-weekly  shop  confer- 
ences was  started  in  1911.  Immediately  scientific  manage- 
ment was  accepted  because  the  workers  were  given  the  choice 
of  deciding  for  or  againsl  it  after  hearing  a  full  discussion  of 
its  value.     If  the  principle  of  collective  agreement  is  accepted, 


224  THE   HUMAN   FACTOR   IN   INDUSTRY 

there  would  seem  to  be  nothing  to  hinder  the  application  of 
scientific  methods  in  determining  the  standard  rate  of  pro- 
duction and  the  particular  point  of  efficiency  which  de- 
serves additional  reward.  In  any  plan  the  basic  wage 
on  which  the  differential  for  an  additional  output  is 
reckoned  is  the  fundamental  consideration  and  adjustable 
by  discussion  and  compromise.  But  it  will  usually  be  found 
that  the  workers'  interest  is  in  the  amount  of  wages  and  not 
in  the  method  of  its  determination.  When  the  danger  of 
"  soldiering  "  on  the  job  during  task-setting  is  removed, 
there  may  be,  however,  little  need  to  resort  to  any  elaborate 
premium  system  to  reduce  the  workers'  unit  wages.  Per- 
haps a  guaranteed  wage  with  all  output  paid  for  at  the  same 
rates  will  be  the  simplest  method  of  remuneration  for  work 
which  can  be  standardized. 

Labor's  Attitude  to  Profit-sharing.  —  Obviously,  profit- 
sharing  does  not  affect  the  fundamental  economic  organiza- 
tion, as  its  advocates  have  so  often  claimed.  Companies 
adopt  profit-sharing  to  increase  production  in  the  belief 
that  the  allotment  of  proportionate  dividends  to  labor 
most  successfully  accomplishes  this.  Occasionally  a  com- 
pany, such  as  the  Maison  Leclaire,  places  a  limit  on  the 
dividends  which  may  be  declared  on  stock,  but  usually 
profit-sharing  is  purely  an  efficiency  measure  with  definite 
limitations  and  those  who  favor  it  should  not  deceive  them- 
selves in  thinking  that  it  alone  is  a  silencer  of  labor  agitators. 
But  labor  in  turn  need  not  maintain  its  suspicious  attitude 
towards  it  where  the  underlying  principles  in  practice  are 
those  outlined  by  Mr.  Dennison  and  his  collaborators, 
namely :  that  profit-sharing  must  not  limit  the  partici- 
pators' freedom,  that  the  system  must  be  clearly  under- 
stood in  advance  by  all  concerned,  that  the  distribution 
should  be  reasonably  frequent,  and  that  it  should  not  be 
accompanied  by  low  wages  and  long  hours. 

Management-sharing    the    Solution.  —  One    suggestion 


METHOD  OF  REMUNERATION  225 

made  by  Mr.  Dennison  and  his  colleagues  is  that  profit- 
sharing  should  be  accompanied  by  management-sharing. 
The  cases  of  the  Jacob  Dolcl  Packing  Company  of  Buffalo 
and  the  Wayne  Knitting  Mills  of  Fort  Wayne  are  cited. 
In  these  companies  the  executives  and  heads  of  depart- 
ments who  share  in  the  profits,  form  advisory  councils  in 
business  management  and  in  the  administration  of  the 
profit-sharing.  Opening  all  problems  of  management  to 
the  discussion  and  decision  of  the  entire  working  force  in 
weekly  shop  conferences  in  the  Packard  Piano  Company 
has  led  to  the  adoption  of  a  profit-sharing  scheme  which 
divides  the  savings  in  production  costs  every  two  weeks 
equally  between  the  company  and  the  employes,  the  latter 
being  paid  in  dividends  on  wages.  At  the  end  of  the  first 
month  the  cost  of  production  was  cut  by  11  per  cent,  which 
meant  a  dividend  of  5^  per  cent  to  the  company  and  to  the 
men  both.  Later,  and  with  the  consent  of  the  working 
force,  hours  were  reduced  from  ten  to  eight,  for  an  experi- 
mental period  of  sixty  days,  and  an  increased  efficiency 
in  that  period  resulted  in  a  saving  of  16  per  cent  in  costs, 
and  a  dividend  on  wages  of  8  per  cent  was  paid  the  em- 
ployes. In  this  case  the  sharing  of  management  and  profits 
has  resulted  in  a  great  economy  in  production  as  well  as  in 
time  and  effort.26 


CHAPTER  IX 
REFRESHMENT   AND   RECREATION 

Rest  rooms  and  cafeterias  are  integral  parts  of  a  modern 
business  organization.  They  have  come  as  industry  has 
realized  the  need  of  eliminating  fatigue  and  has  appreciated 
the  close  relations  between  maximum  production,  good 
health  of  employes  and  attractive  surroundings  for  workers. 
Just  as  safetjr  devices,  no  matter  how  costly,  are  considered 
indispensable  from  the  standpoint  of  production,  so  is  equip- 
ment of  this  kind  looked  upon  as  a  necessity  cost. 

Recreational  activities  carried  on  or  fostered  by  an  industry 
during  leisure  hours  are  essentially  different.  These,  ranging 
from  a  baseball  team  or  annual  picnic  to  a  fully  expanded 
program  centering  around  a  company  country  club  have 
been  developed  to  increase  morale  and  family  feeling  in 
industry.  Although  many  experiments  in  this  field  have 
been  reasonably  successful,  there  is  an  increasing  skepticism 
regarding  their  value  to  the  corporation  and  their  apprecia- 
tion by  the  employes.  Many  employers  feel  that  the  leisure 
hours  of  the  employes  should  be  as  far  removed  from  the 
factory  atmosphere  as  possible.  George  Ranney,  Secretary 
of  the  International  Harvester  Association,  has  expressed 
this  point  of  view.  "  It  is  at  least  questionable  whether 
the  employer  has  any  right  to  follow  the  employe  home  from 
the  factory  and  intrude  on  his  domestic  and  social  life,  nor 
should  there  be  any  need  in  a  city  of  size  and  decent  govern- 
ment. If  a  plant  is  in  a  small  town  recreational  features 
might  be  desirable."  1  The  problem  is,  however,  more  than 
geographical.     The   spirit   behind   these  undertakings   and 

226 


REFRESHMENT   AND   RECREATION  227 

their  management  is  of  equal  importance.  The  social 
activities  centering  around  the  industry  should  be  developed 
by  the  team  work  of  the  employes  with  the  view  of  educating 
the  workers  themselves  ultimately  to  carry  on  the  activities. 

Lunch  Rooms  and  Cafeterias 

Need  for  Lunch  Rooms. — The  "dinner  pail"  with  its 
cold,  unappetizing  lunch,  eaten  at  a  machine,  or  a  window  sill, 
on  the  stairway,  or  on  the  curbstone,  is  passing  into  history. 
The  size  of  our  cities,  the  American  custom  of  a  compara- 
tively short  noon-hour  break  which  makes  it  difficult,  if 
not  impossible,  for  the  worker  to  return  home  for  his  midday 
meal,  and  the  appreciation  by  employers  of  the  connection 
between  good  food  and  efficiency  are  responsible  for  the 
development  of  lunch  rooms  and  cafeterias.  The  fact  that 
the  British  Committee  found  at  least  25  per  cent  of  the 
munitions  workers  undernourished 2  indicated  a  distinct 
need  for  having  cheap,  nourishing  food  available  for  all 
employes.  A  large  Bristol  firm  found,  after  providing  their 
employes  with  food  at  cost  price,  that  a  gradual  reduction 
in  sickness  rate  followed,  until  eventually  it  dropped  to  one 
half  what  it  had  been  previously.3 

Different  Types  of  Lunch  Rooms.  —  The  arrangements 
made  for  providing  hot  lunches  for  operatives  in  the  plant 
are  many  and  varied  —  from  the  gas  jet  in  a  dark  corner  of 
the  workshop  over  which  an  improvised  iron  ring  holds  the 
coffee  pot  while  upturned  boxes  serve  as  tables  and  chairs, 
to  the  chintz  decorated  dining-room  with  small  tables  and 
service.  The  type  and  amount  of  accommodation  to  be  pro- 
vided depend  on  the  distance  of  the  factory  from  the  homes 
of  the  workers,  the  kind  of  workers  served,  and  the  number 
and  quality  of  neighboring  restaurants.  An  eating-room 
separated  from  the  workroom  for  the  workers  bringing 
their  lunches,  with  table  room,  chairs,  and  warming  pi 


228  THE   HUMAN   FACTOR   IN   INDUSTRY 

may  be  considered  a  minimum  and  is  necessary  whether 
there  is  provision  for  serving  food  or  not. 

Cafeteria.  —  The  most  popular  form  of  employes'  restau- 
rant is  the  self-service  cafeteria.  Variety  of  food  is  combined 
with  cheapness  by  reducing  the  amount  of  service  needed. 
The  speed  with  which  food  can  be  served  is  another  advan- 
tage. Confusion  can  be  avoided  by  providing  ample  room 
and  a  sufficient  number  of  trained  employes  at  the  counter. 

Construction.  —  The  lack  of  adequate  restaurant  facilities 
to  deal  with  the  larger  number  of  workers  employed  in  the 
war  industries  led  to  the  extensive  surveys  on  the  subject 
undertaken  by  the  British  Health  of  Munitions  Workers 
Committee  and  the  United  States  Emergency  Fleet  Corpora- 
tion. The  latter  report  gives  all  the  technical  details  of 
proper  cafeteria  construction  and  equipment,  including  a 
plan  for  a  separate  restaurant  building  where  needed. 

Plan.  —  The  number  of  entrances  to  a  cafeteria  is  deter- 
mined by  the  number  of  people  which  it  is  to  accommodate. 
The  "  one-way  "  plan  has  a  single  entrance  and  a  single 
food  counter,  while  the  "two-way  "  cafeteria  is  designed 
with  a  double  entrance,  each  side  containing  the  same  array 
of  food.  The  former  is  all  that  is  required  in  a  small  plant, 
while  the  latter  is  needed  when  large  groups  of  workers  are 
handled.  Many  firms  provide  separate  rooms  for  their  men 
and  women  employes,  and  some  have  special  dining-rooms 
for  the  executives  and  office  workers. 

The  main  points  in  construction  are  that  the  kitchen 
should  be  centrally  located  and  that  the  whole  unit  should 
have  good  lighting  and  ventilation.  Railings  and  barriers 
are  required  in  front  of  all  counters  to  maintain  order  in 
the  lines,  and  the  counters  themselves  should  be  built  of 
sufficient  size  to  accommodate  the  food  without  crowding  and 
be  guarded  to  prevent  it  from  being  handled.  Eight  to  ten 
square  feet  per  person  is  the  amount  of  space  recommended  by 
both  the  British  Health  of  Munitions  Workers  Committee  and 


REFRESHMENT   AND   RECREATION  229 

by  the  New  Jersey  Department  of  Labor.  Han  1  maple  tables 
covered  with  linoleum,  white  tile,  or  a  composition  glass  have 
been  found  satisfactory.     Chairs  seem  preferable  to  stools.4 

Kitchen  Equipment.  —  The  more  essential  restaurant 
machinery  includes  one  ten-foot  range,  one  dishwashing 
machine,  one  potato-peeling  machine,  one  bread-cutting 
machine,  and  one  meat-cutting  machine.5  This  equipment 
cares  for  760  patrons  a  day  in  one  plant.  The  initial  expense 
of  labor-saving  devices  is  large,  though  their  installation  in 
the  end  is  economical.  The  National  Lamp  Works  of  the 
General  Electric  Company  gives  a  list  of  standard  cafeteria 
utensils  to  accommodate  240  employes.  The  list  of  cafeteria 
equipment  includes :  6 

1  ten-gallon  spray  coffee  urn 

1  twenty-gallon  aluminum  stock  pot  with  cover 

1  twenty-five-gallon  aluminum  stock  pot  with  cover 

1  twenty-gallon  inside  boiler  fitted  to  twenty-five-gallon  stock  pot 

handles 
1  fifteen-quart  stock  pot  with  cover 
1  standard  scale  scoop 
1  draining  mat  4'X2'6" 

The  equipment  necessary  to  feed  1000  men  a  day  in  one  of 
the  large  American  shipyards  is  given  as  follows : 4 

1  refrigerator  600  pie  plates 

1  nine-foot  steam  table  600  knives 

2  coffee  urns  600  forks 
300  trays  600  teaspoons 
600  soup  bowls  600  soup  spoons 

600  dinner  plates  1  modern  steam  dishwasher  and 

500  water  glasses  drying  apparatus 

Cost. — The  prices  will  naturally  vary  with  the  com- 
munity. They  will  depend  on  the  items  of  cosl  thai  are  to 
be  included,  the  variety  of  foods  prepared  and  the  number 
of  persons  served.  Many  firms  bear  the  cost  of  renl ,  heat,  and 
light  as  well  as  a  certain  amount  of  supervisory  service.     In 


230  THE   HUMAN   FACTOR   IN   INDUSTRY 

this  case  the  price  of  the  food  covers  approximately  only  its 
cost  and  preparation.  In  other  cases  the  food  prices  are 
raised  to  include  all  the  costs  of  maintaining  the  restaurant. 
A  typical  cafeteria  menu  for  March,  1918,  provided : 

Vegetable  soup $.05 

Tomato  soup .05 

Smoked  pork  tenderloin .15 

Roast  veal .18 

Ham  and  beans .15 

Mashed  potatoes         .05 

Pies,  cakes          -05 

Tea,  coffee,  milk .05 

French  roast .15 

With  a  daily  average  of  760  patrons  from  among  the  2400 
hands,  the  total  monthly  running  cost  is  between  $1200  and 
$1300  and  the  monthly  income  $1400.  The  initial  cost  of 
quarters  and  equipment  was  about  $4000.  The  staff,  con- 
sisting of  one  chef,  one  assistant,  one  dishwasher,  one  porter, 
three  counter  girls  and  two  extra  girls,  served  400  lunches  in 
five  minutes.5 

The  self-supporting  cafeteria  at  Kops  Brothers,  managed 
by  the  Employers'  Mutual  Service  Association,  provided 
the  following  bill  of  fare  in  1919 : 7 

Coffee,  tea    or    cocoa  —  Corned  beef  hash    .     .     .      $.08 

a  cup $.03  Carrots  and  peas    .     .     .        .05 

Hot    or    cold    milk  —  a  Baked  apples 06 

glass 04      Beef  stew 08 

Wheat   or   rye   bread  —  Potato  salad 04 

1  slice 01  Baked  beans  and  tomato 

Rye  bread  —  4  slices  .     .        .03  sauce 05 

Sandwiches 05      Salmon  salad 08 

Soups     (all     kinds)     or  Pies 05 

clam  chowder      ...        .05  Puddings  —  rice,  tapioca, 

Meat  balls  with  tomato  chocolate,  or  cornstarch        .05 

sauce 05  Drake's       citron       and 

Fish  cakes  with  tomato  sponge  cake 03 

sauce 08  Apples,    pears,    oranges 

Frankfurters,  —  2  for      .        .08  (in  season) 04 


REFRESHMENT   AND   RECREATION  231 

On  the  menu  of  the  Continental  Motor  Company  of  Detroit, 
in  1917,  the  soup  is  5jl,  meat  l£,  vegetables  3*f,  pastry 
and  fruit  5jf,  bread  and  rolls  with  butter  3^.  The  average 
price  of  the  meals  bought  is  15?f.8  The  average  lunch 
check  of  the  Filene  Cooperative  Association  dining-room 
was  13<f. 9 

Free  Lunches.  —  A  number  of  banks,  trust  and  life 
insurance  companies  having  a  large  number  of  clerical 
employes  provide  luncheons  free.  The  Metropolitan  Life 
Insurance  Company,  for  instance,  believing  that  many  of 
their  clerks  did  not  buy  wholesome  lunches,  began  in  1908 
to  serve  a  complete  noonday  meal  to  all  Home  Office  em- 
ployes, now  numbering  6000.     A  typical  menu  follows: 

Baked  Ham  with  Burgundy  Sauce 

Boiled  Potatoes  Corn  on  Cob 

Gingerbread  or  Chocolate  Ice-cream 

Bread  and  Butter 
Tea  Coffee  Milk 

Rice  and  milk  or  crackers  and  milk  are  served  to  those  who 
prefer  it. 

In  order  to  facilitate  service,  the  meal  is  placed  on  the 
table  just  before  the  arrival  of  the  clerks.  When  a  choice  is 
provided  the  order  is  placed  on  the  previous  day.  Men 
and  women  are  served  in  separate  rooms.  The  luncheon 
is  served  in  three  shifts,  forty-five  minutes  apart.  The 
cost  to  the  company  exclusive  of  renl  was  slightly  over 
28^  a  day  per  clerk  ;  the  total  cosl  in  1918  was  $359,977.44. 
This  outlay  is  justified  as  an  efficiency  measure."1 

Additional  Refreshments  Furnished. --The  Winchester 
Repeating  Arms  of  New  Haven,  Conn.,  operates  coffee 
booths  in  various  parts  of  the  plant.  Coffee  can  be  obtained 
at  noon,  at  midnight,  and  at  4  a.m.,  costing  5*5.  Milk 
at  3jf  a  glass  is  also  served  at  night,  and  bottled  milk 
is  sold  at  the  gates  during  the  day."     In   the   Bournville 


232  THE   HUMAN   FACTOR   IN   INDUSTRY 

Works  in  England  in  addition  to  drinking  water,  free  milk, 
oatmeal  water,  and  lemon  water  are  supplied  through  the 
day  in  hot  and  dusty  departments.12 

Menu  and  Diet.  —  The  dietary  should  be  balanced  and 
varied  from  day  to  day  and  suited  to  the  type  of  work  in 
which  the  employes  are  engaged.  For  men  employed  in 
physical  labor  there  should  be  special  emphasis  on  energy- 
producing  foods.  The  British  Health  of  Munitions  Workers 
Committee  states  that  the  minimum  canteen  diet  for  men 
engaged  in  this  sort  of  labor  should  contain  3000  calories 
made  up  of  protein  100  grams,  fat  100  grams,  carbohydrates 
400  grams.13  An  excellent  booklet  of  tested  recipes  for 
soups  and  other  foods  has  been  published  by  the  National 
Lamp  Works  of  the  General  Electric  Company  and  will  be 
helpful  on  this  subject.14 

Expert  dietetic  direction  or  advice  should  be  utilized  when- 
ever possible  to  insure  nourishing  food  and  the  essential 
variety  in  menu,  as  well  as  to  reduce  costs.  In  the  prepara- 
tion of  the  menu  due  consideration  must  be  given  to  the 
food  requirements  of  racial  and  religious  groups.  The 
lunch  room  can  be  used  as  an  educational  experiment  in 
food  values.  The  New  York  City  Health  Department  opened 
in  1915  an  educational  lunch  room,  of  particular  interest. 
The  nutritive  values  of  each  article  of  food  were  given  on  the 
menu  and  proper  combinations  suggested.  Each  day  the 
menus  of  two  properly  balanced  luncheons  were  printed  and 
that  containing  the  best  food  values  was  frequently  the  less 
expensive.  Development  of  the  lunch  room  along  this 
line  would  enable  one  to  select  the  best  meal  for  the  least 
amount  of  money.15 

A  problem  of  the  factory  restaurant  is  its  management. 
The  Metropolitan  Life  Insurance  Company  retains  all  con- 
trol of  its  free  lunch.10  The  employes  of  the  Jeffrey  Manu- 
facturing Company,  Columbus,  Ohio,  support  and  manage 
their  own  restaurant.8     The  Filene  CooDerative  Associa- 


REFRESHMENT   AND   RECREATION  233 

tion  has  committee  management  for  their  dining-room  in 
which  1200  people  are  served  daily.9  The  Continental 
Motor  Company  of  Detroit  allows  an  outside  caterer  a  small 
profit,  but  fixes  the  prices  at  which  the  dishes  may  be  sold. 
The  company  furnishes  space,  heat,  and  light  free.8  It  is 
probably  advisable  to  have  the  responsibility  for  restaurants 
vested  in  a  committee  representing  employer  and  employes, 
in  order  to  insure  effective  management  and  an  easy  adjust- 
ment of  complaints  about  food  or  prices.  Such  a  committee 
will  prove  advantageous  even  in  the  case  where  the  company 
pays  the  entire  cost. 

System  of  Payment.  —  Except  in  small  groups  where  a 
flat  rate  is  charged  for  meals  it  is  usually  advisable  to  have 
payment  made  to  a  separate  cashier.  This  is  especially 
true  in  cafeterias.  It  provides  a  comparatively  easy  check 
on  finances  and  facilitates  serving  by  eliminating  the  han- 
dling of  cash  at  the  serving  counter.  In  cafeterias  a  ticket 
puncher  usually  stands  at  the  end  of  the  food  counter  and 
punches  a  ticket  indicating  the  cost  of  the  food,  placing  it  on 
the  tray.  A  cashier  seated  by  the  exit  of  the  dining-room 
collects  the  money.  In  the  Miller  Lock  Company  of  Phila- 
delphia the  employes  may  procure  lunch  tickets  for  twenty 
cents,  forty  cents,  eighty  cents,  or  one  dollar  from  their  fore- 
man and  select  their  lunch  accordingly.  The  tickets  are 
charged  to  the  employes'  accounts  by  the  foreman  and  de- 
ducted from  their  pay  with  a  statement  of  such  deductions 
rendered  on  each  pay  slip.16  A  straight  cost  basis  with  pay- 
ment for  each  meal  is  simpler  and  consequently  preferable. 

Important  Points  in  Running  Factory  Restaurants.  —  In 
general,  in  planning  industrial  restaurants  it  is  of  primary 
importance  (1)  that  the  meals  should  not  be  considered  a 
substitute  for  good  wages  but  should  be  furnished  either  at 
cost  price  or  supplied  gratis  by  the  company  Bimply  as  an 
efficiency  measure,  (2)  that  the  rooms  provided  should  be 
attractively  clean  and  light,  (3)  that  the  serving  of  the  meals 


234  THE   HUMAN   FACTOR   IN   INDUSTRY 

be  expeditiously  managed  by  an  adequate  serving  staff, 
(4)  that  the  food  be  well  prepared,  varied  from  day  to  day 
and  served  hot,  and  (5)  that  the  employes  should  be  given 
some  voice  in  the  management  of  a  restaurant  which  seeks 
to  be  self-supporting,  so  that  there  may  be  no  question  of 
profit  making  in  connection  with  it. 

Rest  and  Recreation  Rooms 

Need  for  Rest  and  Recreation  Rooms.  —  The  rest  and 
recreation  room  has  become  a  part  of  the  necessary  equip- 
ment in  many  plants.  As  Lord  Leverhulme  says,  "  Rest 
rooms  are  as  essential  as  clothing."  17  The  full  benefit  of 
rest  periods,  especially  that  of  the  noon  hour,  can  be  se- 
cured only  by  providing  pleasant  accommodations  in  which 
relaxation  is  possible.  The  immediate  surroundings  of  the 
factory  are  frequently  undesirable  and  it  is  occasionally 
necessary  to  protect  the  employe  and  the  business  by  keeping 
the  employe  on  the  premises  during  working  hours,  as  in  the 
case  of  banks,  where  employes  are  allowed  to  leave  the 
building  only  after  the  books  are  closed  and  the  large  sums 
of  money  handled  during  the  day  accounted  for.18  The 
employer  approaches  the  study  of  rest  and  recreation  rooms, 
therefore,  in  the  same  way  that  he  does  the  question  of  ade- 
quate lighting,  heating,  and  sanitation. 

A  recent  report  on  this  subject  showed  that  over  50 
per  cent  of  the  431  concerns  studied  provided  a  room  or 
rooms  of  this  kind  for  the  use  of  their  employes.  That 
employes  avail  themselves  of  them  is  indicated  by  the 
fact  that  63  per  cent  of  women  employes  and  21  per 
cent  of  the  men  made  use  of  them.18  The  rest  room  of 
the  Dennison  Manufacturing  Company  is  used  by  from 
30-40  people  a  day,  ordinarily,  and  in  hot  weather,  from 
120-130.19 


REFRESHMENT   AND   RECREATION  235 

Variation  of  Equipment.  —  The  facilities  of  rest  rooms 
range  from  a  few  chairs  at  one  side  of  the  lunch  room  to  the 
luxuriously  appointed  rest  rooms  of  the  Curtis  Publishing 
Company  in  Philadelphia,  furnished  in  exquisite  taste  and 
containing  such  accessories  as  fresh  cut  flowers.  The  type 
best  suited  to  the  needs  of  a  plant  depends  upon  the  size, 
character  of  work,  and  type  of  employes.  The  requirements 
for  the  rest  room  provided  by  the  American  Telephone 
Company  for  the  use  of  its  switchboard  operators  differ 
from  those  in  the  rest  room  provided  for  the  men  during 
layovers  by  the  Atchison,  Topeka  and  Santa  Fe  Railroad. 
Again,  men's  rest  rooms  need  usually  be  less  pretentious 
than  women's.  In  such  cases  the  reading  and  rest  rooms 
are  separated  from  the  rooms  where  games  and  dancing  are 
permitted.  The  question  of  separate  lunch  rooms  for  factory 
and  office  workers  must  be  considered. 

Department  Store  Rest  Rooms.  —  Department  stores 
employing  large  numbers  of  women  have  made  a  special 
point  of  providing  rest  rooms  for  their  employes.  B.  Altman 
and  Company  furnishes  spacious  rest  rooms  for  men  and  for 
women  on  the  11th  floor  in  which  "  to  read,  or  write  letters 
during  working  hours."  On  the  13th  floor  is  a  great  "  silence 
room  "  equipped  with  chairs  and  couches,  and  beyond  this 
is  a  sun  parlor  opening  on  to  an  open-air  promenade.  A 
part  of  this  is  reserved  for  a  smoking  room  for  the  men.20 
Marshall  Field  and  Company  provides  a  recreation  room 
adjoining  the  lunch  room  for  men  and  women  employes. 
Its  equipment  includes  a  pianola.  There  is  a  reading-room 
nearby  for  men  and  women,  with  periodicals  and  magazines. 
The  rest  room  of  R.  H.  Macy  of  New  York  City  is  for  its 
women  employes  only.  Here  one  finds  a  piano,  small  library 
and  magazines.21 

Telephone  Company  Rest  Rooms.  —  Rest  rooms  are  part 
of  the  regular  equipment  of  most  of  the  telephone  com- 
panies and  are  used  during  rest  and  lunch  hours.     The  New 


236  THE   HUMAN   FACTOR   IN   INDUSTRY 

England  Telephone  and  Telegraph  Company,21  the  Chicago 
Telephone  Company,22  the  Cincinnati  and  Suburban  Tele- 
phone Company,23  the  American  Telephone  and  Telegraph 
Company  and  many  others  provide  these  rest  rooms  as  a 
measure  for  health  preservation.  In  the  case  of  the  New 
England  Company  the  employes  have  taken  a  pride  in  the 
rooms  and  have  provided  part  of  the  furnishings  themselves. 
The  girls  in  the  Salem  Exchange  sold  soap  to  furnish  their 
room  with  pictures  and  current  periodicals.  Roof-garden 
promenades  have  been  provided  in  many  cases. 

Factory  Rest  Rooms  for  Women.  —  Factory  rest  rooms 
for  both  men  and  women  are  increasing  in  number.  The 
recreation  rooms  at  the  Kodak  Park  Works  of  the  Eastman 
Kodak  Company  are  situated  in  the  three-story  building 
adjoining  the  factory.  They  include  separate  rooms  for 
men  and  women.24  The  National  Cash  Register  Company, 
Dayton,  Ohio;  the  United  Shoe  Machinery  Company, 
Beverly,  Mass. ;  the  Cleveland  Twist  and  Drill  Company ;  the 
Westinghouse  Electric  and  Manufacturing  Company  of 
Pittsburgh,  Pa.,  and  the  Shredded  Wheat  Biscuit  Company 
at  Niagara  Falls  furnish  rest  rooms  for  women  only.  The 
women  employes  of  the  Westinghouse  Air  Brake  Company 
of  Wilmerding,  Pa.,  use  the  lounge  rooms  of  the  Y.  W.  C.  A. . 
club  house. 

Factory  Rest  Rooms  for  Men.  —  Men's  rest  rooms  are 
not  as  numerous  as  women's,  but  a  club  room  and  smoking 
room  for  men  during  the  noon  hour  is  desirable.  The  Ameri- 
can Woolen  Company  provides  the  men's  rest  room  on  one 
side  of  the  restaurant  and  the  women's  on  the  other.  The 
Sherwin-Williams  Paint  Manufacturing  Company  of  Cleve- 
land has  a  men's  club  room,  with  periodicals,  for  use  during 
the  noon  hour.21 

Railroad  Rest  Rooms. — The  railroad  and  street  railway 
companies  have  developed  the  rest  room  extensively,  and  con- 
sider that  there  is  a  very  direct  relation  between  it  and  the 


REFRESHMENT  AND   RECREATION  237 

efficiency  of  their  employes.  Frequent  layovers,  when 
formerly  the  only  place  to  go  to  was  the  saloon,  some  dirty 
shed  or  bunk  house,  made  the  introduction  of  attractive 
reading  and  rest  rooms  of  particular  value.  In  the  railroad 
business  a  clear  brain  is  a  priceless  commodity,  and  the 
morale  of  the  railroad  men,  in  order  to  do  the  work  required 
of  them,  must  be  above  normal.25  These  rooms  have  been 
installed  in  the  railroad  terminals  or  as  part  of  a  club  house 
which  offers  also  sleeping  accommodations,  or  a  room  for  this 
purpose  has  been  rented  in  a  hall  or  house.  Among  the 
railroads  that  have  installed  rest  rooms  and  railway  clubs 
at  stopovers  are  the  Atchison,  Topeka  and  Santa  Fe,  the 
Union  Central  and  Southern  Pacific,  the  Chicago,  Burling- 
ton and  Quincy,  the  Chicago  and  North  Western,  the  Grand 
Trunk,  the  Central  Railroad  of  Georgia,  and  the  Penn- 
sylvania Railroad.26 

Results  Claimed  for  Railroad  Rest  Rooms.  —  Some  of 
the  results  of  rest  rooms,  claimed  by  the  companies,  are : 
(1)  eliminated  gambling  debts,  (2)  competed  successfully 
with  the  saloon,  in  fact,  have  improved  the  tone  of  the 
communities  where  the}r  were  located,  (3)  have  kept  the 
high  grade  of  workers  by  improving  conditions  of  work, 
(4)  have  practically  eliminated  wrecks  due  to  carelessness 
or  violation  of  rules  and  (5)  have  helped  set  up  standards  of 
courtesy  throughout  the  system.  They  have  thus  been  a 
valuable  business  asset  and  a  paying  proposition.26 

Street  Railway  Rest  Rooms.  —  The  street  railway  systems 
all  over  the  country,  as  well,  are  installing  similar  rooms  in 
their  terminals  and  at  the  end  of  their  lines.  The  Inter- 
borough  Rapid  Transit  Company  of  New  York  City  has 
reading,  smoking  and  recreation  rooms  at  all  its  terminals. -'' 
These  companies  have  the  same  problems  to  meet  as  the 
railroads,  though  the  layovers  are  not  as  long  or  the  distances 
as  great.  Nevertheless,  there  is  a  distinct  need  for  rest 
rooms  that  has  been  largely  met  by  the  companies. 


238  THE   HUMAN   FACTOR   IN   INDUSTRY 

Cost  and  Equipment  of  Rest  Rooms.  —  The  National 
Lamp  Works  of  the  General  Electric  Company  has  standard- 
ized the  rest  and  recreation  rooms  in  their  various  plants. 
Their  book  giving  the  equipment  lists  and  costs  for  such 
rooms,  based  on  the  needs  of  a  factory  employing  300  persons, 
225  women  and  75  men,  is  exceptionally  valuable.  These 
costs  are  based  on  an  estimated  attendance  of  four  fifths 
of  the  force,  or  240  people.  Provision  is  made  for  rest 
rooms  for  men  and  for  women,  and  additional  recreational 
space  for  the  latter.  Three  hundred  and  twenty  square  feet 
is  reserved  for  the  men's  room  and  for  the  women's  1220 
square  feet,  and  for  the  recreational  area  1200  square  feet, 
making  a  total  of  2740  square  feet.  The  men's  rest-room 
equipment  consists  of : 

2  settees  6  rubber  mats 
12  straight  chairs  1  set  checkers 

3  game  tables  (round)       1  checkerboard 

1  magazine  table  2  cribbage  counters 

1  table  lamp  4  packs  cards 

6  cuspidors  1  set  chess 

Women's  rest  room  includes  : 

10  green  reed  rocking  chairs  2  green  reed  table  lamps 

10  green  reed  ottomans  1  roll-top  desk 

10  green  reed  straight  chairs  1  swivel  desk  chair 

10  green  reed  settees  1  bookcase 

14  green  hair  pillows  for  settees  1  telephone  bracket 

2  green  reed  magazine  stands  1  desk  fixture 

2  green  reed  fern  stands  7  plants 

3  green  grass  rugs 

The  recreational  area  is  fitted  with  : 

1\  doz.  bent  wood  chairs 
1  piano 
1  waste  can 

Cost.  —  The  cost  in  1918  of  the  men's  rest  room  was  esti- 
mated at  $191.40,  the  women's  $805.83,  and  the  recreational 


REFRESHMENT   AND    RECREATION  239 

area  $304.50,  a  total  expenditure  of  SI 30 1.73,  with  a  per 
capita  cost  for  employes  of  $4.00.27  Standards  for  furnish- 
ing and  installing  rest  rooms  are  being  rapidly  developed 
and  complete  equipments  are  now  obtainable  from  a  number 
of  firms.  One  of  these  offers  three  standard  sets  of  furnish- 
ings. The  first  type,  for  a  business  employing  about  75 
women,  accommodates  10  persons  at  a  time  in  a  room 
15X20  feet  and  costs  $454.43.  The  second  is  estimated 
for  a  concern  with  about  185  women,  supplying  the  needs  of 
25  at  a  time,  with  a  floor  space  of  15X40  feet,  at  the  cost 
of  $707.21 ;  the  third  for  750  women,  allowing  150  women 
at  a  time,  costs  $3108.71.  The  three  estimates  for  men's 
smoking  rooms  of  the  same  sizes  arc  8323.34,  $581.41,  and 
$1764.15  respectively.  This  firm  expects  to  suit  the  indi- 
vidual need  of  each  concern  and  the  price.  These  esti- 
mates are  based  upon  the  supposition  that  there  are  two  rest 
periods  per  person  a  day. 

Supervision  of  Rest  Room.  —  The  supervision  of  the  rest 
room  varies  with  different  companies.  The  medical  divi- 
sion of  the  Dennison  Manufacturing  ( 'onipanv  has  charge  of 
a  rest  room  for  the  2300  employes,  which  is  supervised 
by  the  nurse.  This  comfortably  furnished  room  is  used 
by  women  employes  at  the  noon  period  and  for  one  half 
hour  during  the  working  hours.  All  must  report  to  the 
nurse  before  using  the  room.19  Sears  Roebuck  Company  also 
connects  its  rest  room  with  its  medical  division  and  places 
it  next  to  the  hospital.  Ordinarily  the  lunch  room  and  the 
rest  room  in  the  department  store  or  factory  are  grouped 
together,  and  if  any  one  is  placed  in  charge  of  this  division  it 
is  the  welfare  worker  or  a  special  matron.  The  rest  and 
reading  rooms  of  the  Atchison,  Topeka  and  Santa  Fe 
Railroad  system  are  placed  in  the  charge  of  the  superin- 
tendent of  the  reading  rooms,  who  spends  most  of  his  time 
traveling  up  and  down  (lie  line  organizing  the  work. 
Each  reading  room  is  in  charge  of  a  librarian,  and  at  the 


240  THE   HUMAN   FACTOR   IN   INDUSTRY 

club  house  he  is  usually  assisted  by  his  wife,  who  acts  as 
matron.26 


Noon-hour  Diversion 

Length  of  Lunch  Period.  —  There  is  a  wide  variation  in 
the  length  of  the  lunch  hour  in  various  plants.  The  Metro- 
politan Life  Insurance  Company,  for  example,  limits  the  lunch 
period  to  thirty-five  minutes,  so  that  the  seven-hour  day 
may  close  at  4.30  in  the  afternoon.  On  the  other  hand, 
some  employers  prefer  to  extend  the  lunch  hour  beyond  the 
time  required  for  eating  so  that  the  employe  may  relax 
and  be  fully  refreshed  mentally  and  physically  before  return- 
ing to  the  afternoon  stretch  of  work.  Thirty  minutes  is 
usually  all  that  is  required  for  eating  if  the  luncheon  facilities 
are  near  at  hand  and  adequate. 

Noon  Hour  Activities  Should  Be  Voluntary.  —  If  a  longer 
period  is  in  force  it  becomes  possible  to  plan  recreation  and 
educational  programs  for  the  noon  hour.  A  large  number 
of  corporations  have  undertaken  such  activities.  The 
programs  offered  vary  from  performances  of  local  musical 
clubs  to  a  lecture  on  the  use  of  safety  goggles.  The  lunch 
hour,  whether  short  or  long,  is  usually  clearly  defined  as  one 
belonging  to  the  employe  and  in  consequence  any  activities 
planned  for  that  hour  should  be  voluntary  and  not  com- 
pulsory. There  can  be  no  logical  objection  to  an  occasional 
entertainment,  and  the  attendance  of  employes  at  planned 
diversion  will  indicate  its  acceptability.  To  many,  however, 
such  programs,  especially  if  they  are  educational,  are  not 
conducive  to  thorough  relaxation,  which  is  the  object  of  the 
noon  hour. 

Dancing.  —  Dancing  for  women  has  been  found  to  be 
popular,  especially  for  those  whose  work  does  not  involve 
much  physical  exertion.  Most  rest  or  recreation  rooms  for 
women  contain  a  piano  or  victrola  for  dancing.     In  the 


REFRESHMENT   AND   RECREATION  241 

Gorham  Manufacturing  Company,  space  in  the  women's 
dining-room  is  cleared  after  lunch  for  dancing  during  the 
noon  hour.  Occasionally  a  special  room  is  provided  for 
dancing.  Ordinarily  the  music  is  supplied  by  the  employes 
themselves.  In  a  few  instances  it  is  furnished  by  the  com- 
pany every  day  or  on  a  specified  number  of  days  each  week. 
The  dancing  is  usually  limited  to  women,  and  men  are  not 
permitted  to  participate.  One  New  York  City  depart- 
ment store  forbids  this  form  of  noon-hour  diversion  on  the 
grounds  that  there  is  a  temptation  for  the  girls  to  over- 
stay their  lunch  period  and  that  they  are  afterwards  too 
tired  to  do  good  work.  This  objection  naturally  applies 
only  when  the  occupation  requires  standing  or  involves 
physical  strain.18 

Athletics  and  Gymnasiums.  —  Athletic  fields  or  open 
spaces  adjoining  the  factory  are  popular  during  the  noon 
hour,  especially  in  the  summer  months.  The  shop  base- 
ball team  can  use  this  time  to  practice  and  can  play  in 
the  yard  if  no  diamond  is  provided.  Tennis  and  quoit 
courts  are  kept  up  during  the  summer  months  for  this  use 
by  Brown  and  Bigelow  of  St.  Paul,  Minn.28  Calisthenics, 
under  the  supervision  of  a  competent  gymnasium  instructor, 
are  instrumental  in  reducing  fatigue.  B.  Altman  and  Com- 
pany of  New  York  City  maintains  a  well-equipped  gymna- 
sium  under  the  care  of  a  competent  teacher,  who  gives  the 
men  and  women  employes  setting-up  drills  during  the  noon 
hour.  This  concern  claims  that  I  heir  workers  go  to  lunch 
thoroughly  tired,  and  after  this  program,  they  return  to  their 
places  mentally  and  physically  refreshed.  The  instructor 
teaches  the  girls  especially  how  to  relieve  their  tired  muscles 
and  how  to  walk  and  stand  so  that  tlu-y  can  rest  themselves 
during  work.29 

Concerts  and  Entertainments.  —  Regular  concerts  .ire 
given  by  the  musical  clubs  in  some  factories.  A.1  the  Miller 
and  l.i 'ck  Company  of  Philadelphia,  Pa.,  the  employee  join  in 


242  THE    HUMAN   FACTOR    IN    INDUSTRY 

an  occasional  community  singing  led  by  the  shop  orchestra.30 
A  band  of  44  members  in  one  company  gave  this  kind 
of  entertainment  out  on  the  lawn  in  warm  weather.18  In  the 
Prudential  Life  Insurance  Company  noonday  concerts  are 
given  during  bad  weather.31  Recitals  and  readings  are  held  at 
noon  in  the  recreation  room  of  Marshall  Field  and  Company. 
The  Women's  Association  of  Parke  Davis  and  Company  gives 
entertainments  twice  a  week  during  the  noon  hour.  Some  of 
the  best  talent  of  Detroit  is  represented.  Concerts  predom- 
inate, but  readings  and  lectures  are  occasionally  given.32 

Club  Meetings.  —  Factory  clubs  often  hold  their  meet- 
ings at  noon.  The  "  High  Standard  Club  "  of  Lowe  Bros. 
Company  of  Dayton,  affiliated  with  the  Ohio  Federation 
of  Women's  Clubs,  meets  after  lunch  once  every  two  weeks. 
Its  object  is  to"  promote  sociability  and  interest  in  literary 
and  musical  matters."  The  company  gives  the  members 
an  extra  hour  for  the  meetings.21  The  "  Women's  Century 
Club  "  of  the  National  Cash  Register  Company  meets  at  noon 
time.  The  members  assemble  at  12.30  twice  a  month  for 
half  an  hour  on  their  own  time  and  half  on  the  company's 
time.33 

Educational  Activities.  —  Noon-time  educational  lectures 
are  not  limited  as  to  subject.  Talks  on  health,  plant  prob- 
lems, travel,  and  technical  subjects  are  given  occasionally 
in  a  large  number  of  industries.  The  Noon  Day  Club  for 
the  girls  in  Strawbridge  and  Clothier  of  Philadelphia,  Pa., 
holds  brief  educational  and  industrial  classes.  The  teachers 
are  recruited  from  the  store  force  and  about  30  minutes  are 
devoted  to  class  work,  twice  a  week,  in  either  English, 
foreign  languages,  or  domestic  science.  As  many  as  300 
girls  have  been  members  of  the  club.34 

The  physician  of  the  National  Lamp  Works  delivers  a 
series  of  health  talks  to  groups  of  from  20  to  30  people 
for  an  hour  twice  a  week,  45  minutes  on  company  time,  and 
15  out  of  the  employe's  lunch  hour.35 


REFRESHMENT   AND    RECREATION  243 

Fifteen  or  twenty  minutes  of  the  noon  hour  are  often  used 
for  safety  meetings.  Lectures  on  safety  devices  are  sometimes 
illustrated  with  moving  pictures.  The  Western  Pennsylvania 
Division  of  the  National  Safety  Council  arranged  for  30- 
minute  picture  shows  on  "  safety  "  in  different  shops  in  the 
Pittsburgh  district.  The  companies  give  up  15  minutes  and 
the  men  15  minutes  of  the  lunch  hour.36 

Industrial  Program  of  the  Y.  M.  C.  A.  —  The  noon-hour 
program  of  the  Industrial  Department  of  the  Young  Men's 
Christian  Association  should  be  mentioned  in  this  connection. 
It  covers  practically  all  the  activities  outlined,  under  the 
leadership  of  college  students  and  recent  graduates.  Arrange- 
ments are  made  for  religious  and  educational  talks  as  well 
as  for  entertainments,  community  singing,  and  athletic  sports. 
A  "Shop  Committee"  of  the  men  themselves  is  formed  to 
conduct  the  meetings. 

Lectures  on  sanitation,  hygiene,  first-aid,  and  sex  educa- 
tion are  given  under  the  supervision  of  the  physical  director 
or  a  physician.  Pamphlets  and  lists  of  reading  matter 
connected  with  the  subject  arc  distributed  after  the  talk. 
Accident  prevention  talks  have  a  prominent  place  in  the 
program.  In  one  town  it  is  claimed  that  the  saving  in 
accident  insurance  premiums  effected  by  exhibits,  lectures 
and  demonstration  was  almost  enough  to  cover  the  entire 
budget  of  the  industrial  branch  of  the  local  Y.  M.  C.  A. 

In  the  Middle  West  "  Shop  Chautauquas  "  have  been  popu- 
lar. These  consist  of  brief  programs  of  music,  reading,  and 
displays  of  talent  recruited  from  the  ranks  of  the  workers. 
Entertainments  are  held  daily  for  a  week  in  one  shop  and 
then  repeated  for  the  men  of  a  different  factory.  In  some 
communities,  shop  sings,  organized  under  a  qualified  leader, 
meeting  weekly  at  the  noon  hour,  have  had  large  attend- 
ance.37 On  a  smaller  scale,  the  Young  Women's  Chris- 
tian Association  is  conducting  factory  meetings  along  similar 
lines. 


244  THE   HUMAN   FACTOR   IN   INDUSTRY 

Recreation  during  Non-working  Hours 

In  many  respects  the  industry  is  an  advantageous  unit 
for  the  organization  of  recreational  activities.  It  means 
that  play  with  a  group  of  individuals  and  families  of  fairly 
similar  earning  capacities  and  to  a  certain  extent  of  similar 
interests  is  possible.  Such  activities  can  be  easily  organized 
because  the  individuals  see  each  other  daily.  Friendships 
arising  from  work  are  capitalized  and  continued.  The 
encouragement  of  organized  recreation  is  thus  a  part  of 
the  employer's  program  to  develop  a  social  interest  in  the 
plant. 

Recreation  Facilities 

Club  Rooms  and  Club  Houses.  —  Club  rooms  and  club 
houses  are  frequently  provided  by  present-day  employers 
for  the  use  of  employes  during  their  leisure  hours.  Indeed, 
137  out  of  431  investigated  are  reported  to  have  these  facili- 
ties. 18  Although  most  of  these  140  club  houses  and  club 
rooms  are  of  recent  date,  a  club  house  accommodating  500 
people,  equipped  with  "  concert  hall,"  lodging  rooms, 
reading  rooms,  parlors,  toilets  and  bathrooms  was  erected 
in  1887  by  Warner  Brothers  of  Bridgeport.33 

There  is  naturally  a  wide  range  in  the  facilities  provided. 
The  club  house  which  limits  its  activities  to  that  of  the 
ordinary  club,  and  whose  membership  for  the  most  part 
includes  the  employes,  will  be  discussed  here.  The  com- 
munity or  settlement  type  will  be  considered  in  another 
chapter.  One  finds  all  gradations  from  a  plainly  furnished 
room  to  the  elaborate  country  club  equipped  with  every  con- 
venience and  even  luxury.  The  membership  fees  vary  from 
less  than  $1.00  or  even  no  dues  at  all,  to  $25.00  a  year;  the 
average  being  about  $3.50.  A  few  companies  restrict  the 
membership  to  the  officials,  superintendents,  and  foremen  of 
the  plant,  but  in  the  majority  of  cases  —  85  per  cent  of  those 


REFRESHMENT   AND   RECREATION  245 

on  which  information  is  available  —  the  privilege  of  belonging 
to  the  club  is  open  to  all  employes.  Some  club  houses  are 
open  for  most  of  the  twenty-four  hours,  others  receive 
members  only  at  noon  and  for  a  short  time  in  the  evenings. 
The  latter  group  includes  essentially  the  club  rooms  and 
small  club  houses  located  near  the  factory.  The  country 
club  houses  are  usually  open  all  day,  though  some  allow 
members  only  in  the  afternoon  and  evening.18 

Different  Types  of  Club  Houses.  —  The  club  house  at  the 
Deering  Works  of  the  International  Harvester  Company 
of  Chicago  cost  $27,000.  Its  equipment  includes  ladies' 
room,  reception  hall,  smoking  room,  pool  room,  bowling 
alley,  gymnasium  outfit,  and  an  assembly  room  seating  GOO 
persons.  A  club  house  directly  opposite  the  factory  has 
been  built  by  the  Firestone  Tire  and  Rubber  Company 
of  Akron,  Ohio,  employing  11,000  men.  Dining-rooms 
occupy  the  first  and  second  floors.  On  the  third  is  an 
auditorium.  In  the  basement  are  bowling  alleys  and  a 
swimming  pool  with  shower  baths.38  One  company  em- 
ploying about  2400  men  has  three  clubs,  one  for  American 
employes,  one  for  the  foreigners,  and  one  for  the  negroes. 
The  first  club  began  in  a  small  way,  but  is  now  much 
larger  than  the  others  and  occupies  a  well-equipped  club 
house.     The  dues  are  25  cents  a  month.18 

In  some  of  the  mining  communities  the  employers  furnish 
club  houses  for  their  American  employes  but  make  no 
provision  for  the  ordinary  laborer,  who  is  often  a  Mexican. 
The  club  dues  are  frequently  $25  a  year,  a  prohibitive 
amount  for  all  but  the  better  paid  workers.13  In  contrast  to 
this  is  the  "  Recreation  Building  "  built  by  the  Homestake 
Mining  Company  of  Lead,  South  Dakota,  in  1914,  at  the 
cost  of  $25,000.  Its  equipment  includes  a  theater,  library, 
gymnasium,  bowling  alleys,  plunges,  shower  baths,  and 
swimming  pools.  No  charge  is  made  for  the  use  of  the  build- 
ing except  ten  cents  for  the  moving  picture  show  or  road 


246  THE   HUMAN   FACTOR   IN   INDUSTRY 

show  given  daily  except  Sundays.  The  six  bowling  alleys  are 
used  by  3000  people  in  a  month,  the  swimming  tank  by 
2000  and  the  theater  by  20,000  a  month.39  Railroad  and 
street  railway  companies'  club  houses  are  different  from 
the  type  already  described.  They  are  essentially  adjuncts 
to  the  rest  rooms  at  important  terminal  points,  and  are 
usually  simple  and  utilitarian. 

Country  Clubs.  —  In  providing  country  clubs  for  em- 
ployes, employers  are  actuated  by  the  belief  that  healthy 
recreation  increases  efficiency  and  that  the  industry  is  a 
convenient  center  for  such  activities.  These  clubs,  which 
offer  indoor  and  outdoor  amusements,  are  perhaps  the 
most  elaborate  of  all  recreation  enterprises.  They  are 
usually  near  enough  to  the  city  to  be  available  after  work 
hours  or  during  week-ends.  The  United  Shoe  Machinery 
Company  of  Beverly,  Mass.,  donated  a  county  club  house  to 
their  employes  in  1910,  costing  over  $28,000.  It  is  located 
in  the  center  of  extensive  athletic  grounds,  containing  tennis 
courts,  baseball  diamond,  golf  course,  cricket  and  track 
field,  and  large  grounds  for  gun-club  and  trap-shooting. 
Architecturally,  the  club  house  is  charming.  The  interior 
furnishings  include  bowling  alleys,  billiard  and  pool  tables, 
large  reading  room,  dining-room,  dance  hall,  and  a  perfectly 
appointed  theater.  The  luxury  of  this  equipment  is  rather 
unusual.  The  membership  fee  is  two  dollars  a  year.21  An- 
other company's  country  club,  which  can  be  easily  reached 
by  train  or  trolley  from  the  factory,  has  a  membership  of 
1800,  or  half  of  the  employes  of  the  company.  The  dues  are 
ten  cents  a  week  for  men  and  five  for  women.  It,  too,  is 
surrounded  by  extensive  athletic  fields.18 

Success  and  Failures.  —  If  the  sustained  interest  of  the 
employes  in  the  club  house  is  not  shown  by  increasing  mem- 
bership and  activities  it  cannot  be  classed  as  a  successful 
enterprise.  Although  the  club  house  which  furnishes  the 
only  recreational  diversion  in  an  isolated  industrial  commu- 


REFRESHMENT   AND    RECREATION  247 

nity  doubtless  more  strongly  fills  a  direct  need  than  any  other 
type,  nevertheless,  buildings  erected  near  large  towns  have 
flourished  successfully.  There  have  been,  however,  note- 
worthy failures  in  keeping  an  interested  membership. 

The  club  house  of  the  United  Shoe  Machinery  Company 
at  Beverly,  Mass.,  is  a  thriving  organization.  There  is  at 
present  an  increasing  interest  taken  in  the  social  activities 
centered  about  the  club  building  located  near  the  factory. 
On  the  other  hand,  it  did  not  pay  the  Pocasset  Worsted 
Company,  near  Providence,  R.  I.,  to  spend  $20,000  building 
a  club  house  in  1907.  At  first  membership  was  free,  but 
later  it  was  raised  to  S2.00  a  year  in  order  to  make  the  em- 
ployes feel  they  were  not  accepting  charity.  The  member- 
ship dwindled  nevertheless  from  200  to  60  and  the  experi- 
ment was  considered  unsuccessful.  One  reason  for  this, 
the  company  considered,  was  the  proximity  of  the  industry 
to  Providence.21  It  is  difficult  to  analyze  in  detail  the  reasons 
for  the  success  of  one  club  and  the  failure  of  another,  but  it 
is  obvious  that  a  club  house  is  a  futile  expense  unless  employes 
express  a  strong  desire  for  it. 

Auditoriums.  —  Entertainments  frequently  given  for  or 
by  the  employes  of  different  plants  have  led  to  the  installa- 
tion of  auditoriums  either  in  the  factory  building  itself  or 
in  the  club  house.  In  some  instances  rooms  planned  for 
use  by  the  public,  as  in  department  stores,  or  one  whose 
prime  purpose  was  for  staff  or  sales  conferences,  have1  been 
turned  over  on  occasions  to  employes  for  entertainment 
purposes.  On  other  occasions  the  equipment  of  the  com- 
munity Y.  M.  C.  A.  is  utilized.  The  seating  capacities 
vary  from  300  to  5500.18  Usually  there  is  a  stage,  and  in 
most  cases  seats  are  movable  so  thai  the  room  may  be 
cleared  and  used  for  dancing.  The  assembly  room  in  the 
Curtis  Publishing  building  is  an   unusually  beautiful  one. 

Gymnasiums.  — The  growing  realization  of  the  beneficial 
results  derived  from  proper  recreation  has  led  to  the  installa- 


248  THE    HUMAN    FACTOR   IN    INDUSTRY 

tion  of  gymnasiums  by  a  number  of  companies.  Frequently 
the  auditorium  in  the  plant  or  club  house  has  a  gymnasium 
equipment.  A  majority  of  firms  makes  no  charge  for  the 
use  of  these  rooms.  One  company  charges  $5.00  a  year, 
another  $4.00,  and  one  $1.00;  but  this  seems  to  be  contrary 
to  the  custom.  In  a  large  number  of  cases  instructors  paid 
by  the  company  are  provided.  In  a  few  instances  separate 
gymnasium  buildings  have  been  built.  One  company  em- 
ploying many  thousands  of  people  equipped  a  complete 
gymnasium  for  the  use  of  its  office  employes,  including 
squash  and  handball  courts  and  exercise  room.  Three 
instructors  are  in  charge  of  classes  held  alternately  on  em- 
ployes' and  employers'  time.  In  spite  of  a  rather  general 
development,  on  the  whole  gymnasiums  are  not  widely 
used. 

Swimming  Pools.  —  Swimming  pools  when  provided  are 
usually  connected  with  the  club  houses.  Outside  pools 
have  been  installed  in  a  few  cases,  but  the  privilege  of  using 
them  is  not  limited  solely  to  employes,  but  extended  to  the 
community.  These  pools  are  well  patronized.  One  con- 
cern with  748  employes  claims  that  their  pool  was  used  by 
1580  people  in  a  month.  The  number  of  people  using  the 
pool  for  the  entire  season  in  a  plant  employing  2815  workers 
was  3713. 18  The  tank  of  the  Homestake  Mining  Company 
is  patronized  by  2000  people  a  month  out  of  2370  employes.39 

Recreation  Grounds  for  Athletic  Fields.  —  A  large  num- 
ber of  concerns  have  baseball  diamonds  and  tennis  courts  in 
a  lot  adjoining  the  factory,  and  a  few  employers  have  pro- 
vided extensive  recreational  parks  at  a  distance  from  the 
factory,  for  the  use  of  their  employes.  The  Gorham  Manu- 
facturing Company  near  Providence  is  in  a  park  of  30  acres, 
part  of  which  is  used  as  an  athletic  field  for  employes. 
Sears  Roebuck  Company  of  Chicago,  111.,  have  baseball 
grounds,  12  tennis  courts  with  dressing  rooms,  and  a  field 
for  a  track  meet.21     Strawbridge  and  Clothier  Company  have 


REFRESHMENT   AND    RECREATION  249 

an  entire  city  block  reserved  for  an  employes'  athletic 
field.40  This  includes  a  baseball  field,  running  track  and 
tennis  courts.  A  Rochester  button  company  has  laid  out 
an  extensive  area  for  different  sports  in  the  park  which  sur- 
rounds their  factory. 

Summer  Camps  and  Homes.  Camps.  —  Summer  homes 
and  camps  are  established  by  firms  in  order  to  make  possible 
cheap,  healthful  vacations  for  their  employes.  They  pro- 
vide an  opportunity  to  spend  a  vacation  in  the  country 
under  pleasant  surroundings  at  a  low  cost.  A  number  of 
camps  are  maintained  by  department  stores.  John  Wana- 
makcr  of  Philadelphia,  Pa.,  has  equipped  "  The  Barracks  " 
in  Barncgat  Bay,  N.  J.,  with  a  house  for  women  employes 
and  tents  for  the  boys.  There  are  five  acres  of  grounds  for 
semi-military  drilling,  and  provisions  for  tennis,  boating  and 
sailing.  Trained  medical  officers  supervise  hygiene  and 
sanitary  conditions.  Attendance  at  this  camp  for  two 
weeks  during  the  summer  is  obligatory  on  the  part  of  all 
boys,  but  optional  for  women.  Curtis  Publishing  Company 
runs  Camp  Tekenink  as  a  summer  camp  for  its  Curtis 
Junior  Camp,  composed  of  its  younger  employes,  who  may 
spend  the  week-end  or  a  vacation  there.21 

Summer  Homes.  — ■  The  Mutual  Aid  Society  of  R.  H. 
Macy  and  Company  of  New  York  has  opened  a  vacation 
house  with  a  matron  in  charge,  on  17  acres  of  ground  in 
Central  Valley,  New  York.  Board  and  transportation  are 
free.  Every  member  is  entitled  to  a  week's  vacation  there 
if  he  so  desires  and  if  he  has  been  with  the  concern  a  year. 
The  society  gives  a  ball  each  year  to  help  raise  money  for 
the  house.  The  company  supplies  the  deficit.  "  Ila/.el- 
hurst,"  the  vacation  home  of  tin-  Cincinnati  and  Suburban 
Telephone  Company,  has  all  the  conveniences  of  an  up-to- 
date  hotel  and  is  under  (he  direction  of  a  matron.  There 
are  46  bedrooms,  each  opening  on  a  sleeping  porch.  Every 
telephone  girl  is  entitled  to  a  week's  vacation   in  summer 


250  THE   HUMAN   FACTOR   IN   INDUSTRY 

and  one  in  winter,  for  which  no  charge  is  made.23  The 
Chicago  Bell  Telephone  Company  has  built  a  recreation 
home  at  Warrenville  for  operators  who  need  country  air, 
good  food  and  surroundings  on  their  summer  vacation.22 

Vacation  Bureaus.  —  If  these  resorts  are  planned  pri- 
marily for  those  employes  who  are  physically  below  par, 
and  who  should  be  under  the  care  of  a  physician  during  their 
vacation  there  would  seem  to  be  a  place  for  them  in  industry. 
Otherwise  more  profit  would  be  obtained  from  a  vacation 
spent  away  from  business  associates  and  surroundings.  For 
this  reason,  employers  have  sought  to  provide  employes  with 
an  information  service  to  assist  them  in  making  their  vaca- 
tion plans,  in  some  cases  cooperating  with  public  agencies 
and  groups  of  employers.  The  Cleveland  Vacation  Bureau 
helped  the  Service  Department  of  the  Clothcraft  Shops  to 
find  farmhouses,  camps  and  places  in  the  country  where 
the  employes  could  spend  their  vacations.41  The  Coopera- 
tive Store  Committee  of  the  Filene  Cooperative  Associa- 
tion secures  good  places  for  employes  to  go  for  the  summer 
holidays.21  This  newer  plan  supplanted  a  former  summer 
vacation  cottage  because  it  allows  greater  freedom  in  select- 
ing the  kind  of  recreation  desired  and  because  it  does  not 
savor  of  paternalistic  control. 

Recreation  Activities 

Clubs.  —  Employers'  athletic  associations,  musical,  social, 
educational  clubs,  each  using  the  plant  for  the  recruiting 
ground  of  its  membership  and  as  the  center  of  its  activities, 
abound  in  American  industries.  One  club  often  engages 
in  a  number  of  activities,  and  the  athletic  association  fre- 
quently manages  not  only  athletics  but  all  social  activities 
as  well. 

Musical  Societies  Bands.  —  Musical  organizations  in 
industry  have  a  wide  range.     Many  companies  contribute 


REFRESHMENT   AND    RECREATION  251 

the  instruments  and  the  uniforms,  employ  leaders,  and  pro- 
vide the  place  for  the  band  to  rehearse,  because  a  band 
not  only  develops  esprit  de  corps  but  is  a  valuable  adver- 
tising feature.  Some  even  pay  the  members  for  time  they 
spend  in  practice,  but  usually  rehearsals  are  held  outside  of 
business  hours.  The  Metropolitan  Life  Insurance  Company 
Band  has  over  100  pieces  and  is  the  largest  in  New  York 
City.  The  John  Wanamakcr  organization  includes  a  girls' 
military  band  of  about  40  pieces,  and  a  boys'  drum  and 
bugle  corps  of  about  30  members.  The  function  of  the 
band  is  not  only  to  give  pleasure  to  individual  members, 
but  to  play  at  company  entertainments,  annual  picnics,  and 
outings,  and  to  give  concerts  at  noon  or  outside  working 
hours.  One  company  has  free  monthly  concerts  given  by 
its  band,  attended  by  about  3500  people.18 

Choral  Societies  and  Glee  Clubs.  —  The  music  is  usually 
furnished  and  the  instructor  hired  by  the  company  for  plant 
choral  societies.  Here  again,  members  are  frequently  paid 
for  the  time  spent  in  practice.18  Department  stores  make  a 
special  feature  of  this  sort  of  club  and  often  hold  annual 
concerts  with  quite  pretentious  programs.  Strawbridge 
and  Clothier  lay  great  emphasis  on  musical  organizations  as 
part  of  their  recreational  program.  Their  chorus,  in  particu- 
lar, is  widely  known.  Its  rehearsals  are  held  for  one  and  one 
half  hours  once  a  week  during  six  or  seven  months  of  the 
year.  The  members  of  Marshall  Field  and  Company  Choral 
Society  who  attend  75  per  cent  of  the  rehearsals  are  given 
an  extra  vacation.  H.  Black  and  Company,  and  Joseph 
and  Feiss  Company  of  Cleveland  have  musical  clubs.  John 
Wanamaker,  and  William  Filene's  Sons  Company,  Boston, 
also  have  choral  clubs.  The  former  pay-  for  the  services  of  a 
trained  musician.  The  choral  club  of  the  Filene  ( Jooperative 
Association,  however,  engages  t  heir  own  instructor.  All  mem- 
bers are  charged  ten  cents  a  week  to  meet  this  expense.21 
The  Glee  Club  of  the  Metropolitan  Life  Insurance  Com- 


252  THE   HUMAN   FACTOR   IN   INDUSTRY 

pany  is  supported  by  a  dues-paying  associate  membership 
of  non-singing  employes. 

Orchestras.  —  The  size  of  an  orchestra  varies  from  10  to 
100  members,  with  an  average  of  25  to  35  members.  One 
orchestra  which  began  with  twelve  members  a  few  months 
ago  now  numbers  one  hundred.  Under  a  competent 
director  it  has  held  a  series  of  community  concerts  each 
year.18  The  orchestra  of  employes  of  Gimbel  Brothers, 
Philadelphia,  gives  regular  hour-and-a-half  weekly  morning 
concerts.  The  Western  Electric  Company  and  the  Metro- 
politan Life  Insurance  Company  have  a  mandolin  club  as 
well.  The  300  boys  in  the  Cadet  Battalion  of  the  Wana- 
maker  stores  are  taught  singing.21 

Educational  Clubs.  —  The  formation  of  groups  of  workers 
into  clubs  for  educational  purposes  has  been  encouraged  by 
a  number  of  concerns,  with  varying  success.  The  Progress 
Club  of  the  Kohler  Industries  of  New  York  City  is  a  partic- 
ularly successful  one,  with  its  membership  limited,  however, 
to  executives,  heads  of  different  manufacturing  departments 
and  men  in  office  organization.  Monthly  meetings  to  de- 
velop cooperation  are  held.  The  miniature  engineering 
society  organized  by  the  Greenfield  Tap  and  Die  Corpora- 
tion, modeled  on  the  American  Society  of  Mechanical 
Engineers,  is  suggestive.  The  aim  of  this  club  is  to  develop 
the  employes  into  a  "  team  of  experts  in  the  design,  develop- 
ment and  the  manufacture  of  the  product."  All  male  em- 
ployes are  eligible  for  membership  and  the  club  now  has 
341  members.42  The  younger  engineers  of  the  Westinghouse 
Electric  and  Manufacturing  Company  have  a  club  which 
now  has  750  members.  Fee  for  membership  is  $4.00  a 
year  and  $4.00  more  for  the  use  of  its  well-equipped  gym- 
nasium.43 Excursions  are  made  to  the  local  mills  and 
factories  and  a  lecture  course  is  given  on  electrical  sub- 
jects.21 

Some  of  the  clubs  offer  a  more  general  type  of  education. 


REFRESHMENT  AND   RECREATION  253 

The  ■"  Community  Club"  of  R.  H.  Macy  and  Company 
conducts  regular  classes  in  domestic  science,  dancing,  gym- 
nasium and  swimming,  and  also  does  dramatic  work.44  The 
membership  fee  of  the  John  Wanamaker's  Women's  League, 
which  is  50  cents  a  year,  entitles  a  member  to  join  any  class 
from  dressmaking  to  physical  culture.  The  "  High  Stand- 
ard Club  "  of  the  Lowe  Brothers  Company,  paint  manu- 
facturers, is  a  member  of  the  Ohio  Federation  of  Women's 
Clubs.  Its  aim  is  to  promote  interest  in  literature  and 
musical  matters,  and  it  meets  twice  a  month  at  the  noon  hour. 
The  annual  dues  are  60  cents.  The  program  for  the  year 
includes  lectures  on  "  travel,  hygiene,  books,  great  men, 
literature,  and  music."  21  Among  the  many  interesting 
English  developments  along  these  lines  are  those  of  Lever 
Brothers.  The  Port  Sunlight  Men's  Club  combines  a  social 
club  with  a  scientific  and  literary  society.  The  meetings 
of  these  societies  are  supplemented  by  study,  lectures, 
experiments,  and  stereopticon  views.33 

Athletic  Associations.  —  Athletic  associations  are  both  an 
effect  and  a  cause  of  athletics  as  a  recreational  factor  in 
industry.  They  are  exceedingly  common.  The  Athletic 
Association  of  Strawbridge  and  Clothier  has  charge  of  the 
company  athletic  field.  The  annual  dues  of  $1.00  for  men  and 
$.50  for  women  allow  members  the  use  of  the  field  and 
admit  them  to  all  Association  baseball  games.40  The  Ath- 
letic Association  of  the  Metropolitan  Life  Insurance  Com- 
pany of  New  York  City  is  also  conducted  by  its  employes. 
It  was  established  1894,  and  now  has  a  membership  of  1000. 45 
Any  employe  of  the  United  Shoe  Machinery  Company  is 
eligible  for  membership  in  their  Athletic  Association  on 
payment  of  $1.00  a  year.  A  few  people  from  Beverly, 
Mass.,  may  also  join.  The  officers  of  the  club  are  selected 
by  the  members.  The  Macy  Athletic  Club  first  met  at 
the  23d  St.  Y.  M.  C.  A.  So  much  interest  in  athletics 
was    aroused   at   this   meeting    that    the   use   of   a   recrea- 


254  THE   HUMAN   FACTOR   IN   INDUSTRY 

tion  ground  was  planned  and  a  permanent  association 
organized.46 

Social  Clubs.  —  Occasionally  when  dances  and  entertain- 
ments are  given  for  or  by  the  workers  of  an  industry  they 
are  held  under  the  auspices  of  a  specially  organized  social 
club.  Usually,  however,  the  athletic  association  is  in  charge. 
The  operators  in  the  Chicago  Telephone  Company  have 
organized  social  clubs  which  give  dances,  picnics,  and 
various  entertainments  throughout  the  year.  Sixty-five  per 
cent  of  the  employes  comprising  the  "  Thomanco  Club " 
of  the  Thomas  Manufacturing  Company  of  Dayton  joined 
for  social  purposes.  The  dues  are  25  cents  a  month, 
but  when  necessary  the  company  aids  the  club  finan- 
cially.21    ' 

Social  Gatherings.  —  A  recent  investigation  of  239  in- 
dustries showed  that  236  contributed  in  some  degree  to 
entertainments  for  their  employes.  The  social  gatherings  are 
of  all  varieties,  and  include  dances,  theatricals,  or  parties  at 
Halloween  or  Christmas  time.  Dances  predominate,  as 
they  are  the  simplest  form  of  entertainment.  Employes 
frequently  take  part  and  share  the  expenses.18  In  other 
cases  the  firm  carries  the  major  or  entire  cost.  Brown,  Bige- 
low  and  Company  of  St.  Paul,  Minn.,  gives  its  employes  a 
dance  every  six  weeks  in  the  St.  Paul  Armory,  charging  a 
small  amount  for  admission,  and  one  evening  every  two 
weeks  a  dance  presided  over  by  a  dancing  teacher  is  held 
in  the  club  rooms.28  H.  J.  Heinz  Company  entertains  its 
employes  with  vaudeville  shows,  Christmas  entertainments 
and  dances.  The  Shredded  Wheat  Biscuit  Company  gives 
an  annual  Christmas  entertainment  and  runs  a  series  of 
dances  in  their  auditorium.21 

Athletic  Baseball.  —  Although  a  great  variety  of  athletic 
sports  have  been  introduced  into  the  recreational  activities 
of  industrial  workers,  "  the  great  American  game  "  of  base- 
ball still  holds  preeminence  in  the  number  of  firms  who 


REFRESHMENT   AND    RECREATION  255 

have  introduced  it,  and  in  its  subsequent  popularity.  In 
many  cases  the  company  provides  the  ground.  Some  even 
go  further,  and  either  equip  the  team  or  make  cash  donations 
for  this  purpose.  Larger  concerns  have  formed  teams  in 
different  departments  and  have  interdepartmental  contests. 
Some  employes'  teams  belong  to  city  leagues.  When  a 
company  has  more  than  one  plant,  employes  have  formed 
leagues  among  themselves.  One  concern  had  twenty-five 
of  these  teams  in  its  league.18 

A  possible  danger  of  laying  too  much  emphasis  upon 
winning  the  championship  is  that  men  will  be  employed 
essentially  because  they  are  athletes,  and  a  disorganization 
of  the  spirit  and  discipline  throughout  the  plant  is  likely  to 
result. 

Other  Sports.  —  Other  sports  —  tennis,  basket  ball,  bowl- 
ing, soccer,  cricket,  hockey,  even  football  and  golf  —  have 
been  introduced  by  industry  with  varying  degrees  of  success. 
These  have,  however,  been  patronized  chiefly  by  office 
workers.  If  the  facilities  are  provided  by  the  company,  this 
is  not  necessarily  the  case.  Gun  clubs  are  found  in  a  few 
industries,  usually  in  connection  with  the  country  club.  The 
twelve  tennis  courts  furnished  by  the  Sears  Roebuck  Com- 
pany argue  for  the  popularity  of  the  sport  in  that  company. 
The  National  Cash  Register  Company  of  Dayton  has  bowl- 
ing teams  supported  by  the  company.21  A  button  company 
of  Rochester,  N.  Y.,  claims  that  bowling  is  the  most  popular 
sport  they  have  introduced.  A  league  is  formed,  and  there 
is  great  rivalry  between  the  teams.  The  balls  are  furnished 
by  a  sporting  goods  manufacturer.47  The  Wagner  Electric 
Manufacturing  Company  has  six  basket  ball  teams.  Soccer 
also  is  popular  in  this  company.  Four  teams  belong  to  the 
Municipal  League  of  St.  Louis.48 

Gymnasium  Classes. — Those  industries  that  provide 
gymnasiums  or  gymnasium  equipment  as  a  rule  have  formed 
classes  under  the  supervision  of  a  paid  instructor.     Gym- 


256  THE   HUMAN   FACTOR   IN   INDUSTRY 

nastic  classes  for  women  are  conducted  in  the  Home  Office 
of  the  Metropolitan  Life  Insurance  Company.  Two  classes, 
approximately  50  each,  are  held  in  the  afternoons  between 
4.30  and  6.00  o'clock,  and  corrective  Swedish  exercises 
are  taught.45  Some  companies  without  gj^mnasiums  of  their 
own  pay  part  of  the  membership  fees  for  the  courses  in  the 
Y.  M.  C.  A.  and  Y.  W.  C.  A.18 

Field  Days  and  Outings.  — X)nce  a  year  it  is  customary  in 
many  concerns  to  have  either  a  field  day  or  general  outing 
for  the  employes  and  their  families.  These  Annual  Field 
Days  are  usually  big  events  and  well  attended.  Their 
programs  include  athletic  events,  and  frequently  offer  enter- 
tainments similar  to  those  at  a  county  fair.  Eight  plants, 
employing  40,100  workers,  estimated  the  total  attendance 
at  eight  field  days  as  35,000.18  One  of  the  most  interest- 
ing is  the  "  Sam  Sam "  day  of  the  United  Shoe  Ma- 
chinery Company.  It  comes  once  a  year  in  August  and 
presents  a  great  variety  of  interests.  Races  of  all  kinds, 
games,  exhibits  of  poultry,  vegetables  and  flowers,  side  shows 
and  music,  all   form  a  part  of  its  program.49 

The  annual  outings  are  one  of  the  most  popular  forms  of 
recreation.  Their  democratic  management  and  the  slight 
expense  incurred  by  attendance  are  some  of  the  reasons  for 
their  success.  They  can  be  made  an  important  factor  in 
improving  morale.  Some  companies  hold  picnics,  some 
charter  pleasure  boats  and  even  whole  amusement  parks. 
Transportation  is  usually  furnished  free.  Frequently  the 
families  of  the  employes  are  included  and  a  few  companies 
allow  their  workers  to  bring  guests  as  well.  The  numbers, 
therefore,  attending  these  outings  are  large.  Attendance  at 
one  company  picnic  was  20,000 ;  at  another  12,000.  In 
the  latter  case  the  company  provided  transportation  and 
prizes  for  the  games.18  In  order  to  save  expenses  several 
firms  may  group  together  and  have  their  outing  on  the  same 
day  and  at  the  same  place.    To  distinguish  the  plants  each 


REFRESHMENT   AND    RECREATION  257 

employe  wears  a  souvenir  button  and  a  colored  ribbon  bear- 
ing the  company's  name.50 

Management.  —  Recreation  work  in  an  industry  may  be 
managed  by  the  employer,  by  the  employer  and  employes 
cooperatively,  or  exclusively  by  the  employes.  In  slightly 
more  than  one  half  the  cases  in  a  survey  of  the  recreation 
in  461  industries,  this  work  was  done  by  the  employer  alone.18 
The  railroad  club  houses  are  managed  exclusively  by  the 
companies.  The  activities  of  John  Wanamaker  of  Phila- 
delphia are  also  conspicuous  examples  of  employers  who 
finance  and  manage  their  recreational  activity. 

There  are  a  large  number  of  employers,  on  the  other  hand, 
who  finance  these  organizations  but  allow  their  workers 
to  manage  them,  for  the  most  part,  themselves.  All  the 
recreational  activities  in  the  United  Shoe  Machinery  Com- 
pany are  run  by  the  officers  and  committees  of  the  Athletic 
Association  made  up  of  employes  who  wish  to  join.  One 
reason  for  the  eminent  success  of  these  undertakings,  in 
the  company's  belief,  is  the  fact  that  the  employes  have 
had  a  free  hand  in  the  various  organizations,  although 
there  has  been  a  certain  amount  of  cooperation  between 
the  company  and  the  association.  The  club  house  of 
the  New  York  Edison  Company  is  controlled  by  the  em- 
ployes, and  in  the  majority  of  club  houses  of  the  United 
Steel  Corporation  this  is  also  true.  The  International 
Harvester  Company  follows  this  same  scheme  of  manage- 
ment. 

The  recreational  work  of  William  Filene's  Sons  Company 
is  fundamentally  different  from  the  other  types,  since  the 
work  is  conducted  and  financed  by  the  Filene  Cooperative 
Association,  of  which  every  employe  can  be  a  member. 
Committees  are  appointed  by  the  president  to  take  charge 
of  different  divisions  of  the  work.  There  are  an  athletic 
committee,  an  entertainment  committee,  etc.  The  firm 
has  allotted  space  in  the  Btore  for  the  comfort  and  recreation 
s 


258  THE    HUMAN   FACTOR   IN    INDUSTRY 

of  their  employes,  but  apart  from  this  all  recreational  activi- 
ties are  self-supporting. 

Y.  M.  C.  A.  and  Y.  W.  C.  A.  Control  of  Recreation.  — 
Industrial  club  houses  are  in  a  varying  degree  under  the 
control  of  the  Y.  M.  and  Y.  W.  C.  A.  Some  companies 
simply  contribute  financially  to  the  association  in  their 
vicinity,  or  pay  half  the  membership  of  their  workers  who 
wish  to  join.  Others  build  and  equip  the  club  house  them- 
selves and  turn  it  over  to  the  Christian  Association  to 
manage.  Marshall  Field  and  Company  and  Wells  Fargo 
and  Company  pay  one  half  the  membership  for  all  em- 
ployes wishing  to  join.  The  Westinghouse  Air  Brake 
Company  of  Wilmerding,  Pa.,  built  and  equipped  a 
Y.  M.  C.  A.  and  turned  it  over  to  the  association  to  ad- 
minister.21 

Union  Management  of  Recreation.  —  Union  labor  has 
frequently  opposed  employers'  recreation  work,  holding  that 
the  aim  and  tendency  of  such  work  was  to  shackle  labor 
with  gratitude  and  diminish  the  freedom  of  the  bargaining 
process.  Where  the  union  has  entered  the  industry  it  has 
often  taken  the  management  of  recreation  into  its  own  hands. 
The  dances  arranged  by  the  union  in  S.  Korach  and  Com- 
pany in  Cleveland  were  crowded,  while  those  given  under  the 
auspices  of  the  welfare  department  had  been  unsuccessful. 
Union  summer  camps  for  the  Chicago  Bell  Telephone 
Company  competed  successfully  with  the  company  camps.51 
The  activities  of  the  International  Ladies'  Garment  Workers 
Union  along  these  lines  are  of  interest.  Their  program  is 
essentially  an  educational  one,  but  has,  however,  recreational 
features.  It  is  carried  on  in  the  public  schools  in  a  niunber 
of  cities.  Classes  in  gymnastics  and  moving  pictures  are 
included.  Occasional  musical  numbers  and  other  enter- 
tainments of  an  educational  character  are  added.  Theater 
passes  have  been  secured  for  a  number  of  union  members, 
reducing  the  price  from  SI. 00  to  as  low  as  20  cents.     The 


REFRESHMENT    AND    RECREATION  259 

members  of  this  union  take  great  pride  and  interest  in  1  hex- 
activities.  To  the  freedom  and  independence  which  they 
feel  is  no  doubt  largely  due  the  success  of  these  under- 
takings.52 

Tendency  of  Modern  Industrial  Recreation.  —  Un- 
doubtedly there  is  much  to  be  gained  by  the  introduction  of 
recreational  features  during  the  leisure  time  of  the  employe. 
The  relationship  within  the  unit  of  the  industry  will  be 
strengthened,  and  a  greater  interest  in  the  work  is  likely  to 
develop,  resulting  from  a  happier  outlook  on  life.  The 
employer's  part,  however,  is  decreasing  except  in  so  far  as 
concerns  the  furnishing  of  facilities  and  the  occasional 
stimulus  of  suggestion.  The  growing  tendency  is  that  of 
allowing  the  workers  to  control  and  direct  as  far  as  possible 
these  features,  and  the  marked  success  which  some  industries 
have  achieved  in  their  recreational  program  has  been  largely 
due  to  this  fact.  Rather  indeed  than  keeping  them  as 
purely  industrial  facilities  the  community  is  being  used 
whenever  possible. 


CHAPTER  X 
THE   EMPLOYER  AND   THE   COMMUNITY 

The  Need  for  Industrial  Housing.  —  The  prime  interest 
of  the  employer  has  naturally  been  in  the  working  time  of 
his  employes  —  the  time  within  the  plant.  Managers 
have  considered  the  factors  which  affect  a  man  while  at 
work,  but  have  paid  little  attention  to  the  preservation  of 
his  fitness  during  non-working  hours.  It  is  these  hours 
which  are  of  greatest  importance  in  determining  the  ef- 
fectiveness of  the  worker.  All  the  community  facilities 
surrounding  an  individual  affect  not  only  his  physical  well- 
being  and  consequent  productivity  but  his  entire  outlook. 
The  house  in  which  he  lives,  the  store  at  which  his  wife 
buys  supplies,  the  schools  which  his  children  attend,  the 
facilities  for  recreation,  all  play  a  part  in  the  attitude  of  the 
individual  towards  his  life  and  his  work. 

The  most  important,  however,  is  housing,  because  of  the 
apparent  though  unproved  relation  between  housing  and 
health.  Poor  housing  conditions  are  factors  in  impairing 
the  health  and  morale  of  the  worker,  in  lowering  efficiency, 
in  breeding  discontent,  in  retarding  production,  and  in  in- 
creasing labor  turnover.  The  relationship  of  housing  and 
city  development  to  health  is  indicated  by  a  comparison 
of  the  infant  mortality  and  ordinary  death  rates  of  con- 
gested Liverpool  and  the  small  town  of  Letchworth.1 

Infant  Mortality    Ordinary  Death 
per  1000  Births       Rate  per  1000 

Liverpool        125.0  18.1 

Letchworth 50.6  6.1 

260 


THE   EMPLOYER   AND   THE   COMMUNITY       261 

Increasing  Production.  —  Where  housing  for  workers  is 
totally  inadequate  the  employer  must  take  an  interest  in  a 
housing  project,  because  of  decreased  production  and  inability 
to  secure  sufficient  workers.  An  example  of  this  situation 
is  that  of  three  Connecticut  towns,  Derby,  Shelton,  and 
Ansonia,  where  in  1917  there  were  no  houses  within  the 
means  of  the  average  skilled  mechanic.  One  company 
had  to  turn  over  to  out-of-town  machine  shops  work  to  the 
value  of  over  $800,000  owing  to  the  inability  to  get  me- 
chanics. They  could  not  come  because  there  was  no  place 
to  lodge.2  It  has  been  claimed  that  improved  housing  con- 
ditions increased  the  efficiency  of  labor  in  one  town  25  per 
cent  within  a  few  months.3 

Reducing  Labor  Turnover.  —  That  housing  is  an  impor- 
tant factor  in  the  problem  of  labor  turnover  is  testified  to 
by  many  employers  and  revealed  by  illuminating  statistics. 
In  1916  one  rubber  company  had  a  labor  turnover  of  187 
per  cent.  The  great  majority  were  single  men  who 
entered  the  rubber  industry  because  of  the  high  wages 
offered,  rented  a  hall  room  and  stood  it  just  as  long  as 
they  could  and  then  went  elsewhere.  The  secretary 
of  this  company  says,  "  They  had  no  place  to  live,  no 
decent  place  to  stay,  and  we  all  know  what  home  means 
well  enough  to  know  that  that  was  the  basic  reason  for  the 
turnover."  4  Another  example  is  that  of  a  large  eastern 
factory  which  in  1917  employed  30,000  men  to  maintain  a 
pay  roll  of  10,000.  The  men  would  no1  stay  because  of 
unsatisfactory  living  conditions.1  In  the  city  of  Bucyrus, 
Ohio,  one  concern  brought  one  hundred  and  fifty  men  into 
the  city.  In  a  few  days  only  thirty  remained.  The  others 
had  left  because  they  could  secure  no  homes.2  Em- 
ployers almost  universally  agreed  that  the  housing  shortage 
was  an  important  factor  in  the  high  labor  turnover.6 
Thus  the  so-called  "  floater  "  is  in  part  a  product  of  bad 
housing. 


262  THE   HUMAN   FACTOR   IN   INDUSTRY 

Securing  the  Best  Type  of  Worker.  —  The  efficient  worker 
will  go  to  and  remain  only  in  the  towns  offering  decent  hous- 
ing conditions.  When  labor  is  plentiful  and  wages  low  a 
man  is  loath  to  throw  up  his  job,  he  will  tolerate  bad  hous- 
ing for  the  sake  of  employment,  but  high  wages  alone  are  not 
sufficient  to  hold  desirable  employes.  They  demand  suit- 
able living  conditions  for  themselves  and  for  their  families 
as  well. 

In  February,  1918,  the  need  for  highly  skilled  mechanics 
in  Bridgeport  was  indicated  by  the  large  number  of  adver- 
tisements in  the  daily  newspapers  from  nearly  every  plant 
in  the  town,  while  there  were  only  about  fifteen  advertise- 
ments daily  of  houses  for  rent.7  Some  employers  stated 
that  they  could  increase  their  production  from  10  to  20 
per  cent  if  decent  housing  was  provided  and  labor  turn- 
over was  thus  reduced.6 

Preventing  Labor  Disturbances.  —  That  there  is  also  a 
direct  relation  between  labor  unrest  and  bad  housing  is 
illustrated  by  the  significant  fact  that  "  in  the  last  five 
years  living  conditions  in  the  California  Labor  Camps  have 
been  revolutionized  and  during  these  years  no  serious 
labor  disturbances  have  taken  place  in  California."  While 
neighboring  States  were  experiencing  labor  disturbances 
brought  about  by  "bad  living  conditions  it  is  significant 
that  but  one  minor  instance  of  labor  trouble  on  account  of 
such  unsanitary  conditions  was  reported  in  California.8 

Another  example  of  industrial  unrest  in  which  living 
conditions  assume  an  important  role  is  that  of  the  I.  W.  W. 
strikes  in  the  State  of  Washington.  In  September,  1918, 
Robert  Bruere  started  on  his  investigation  of  the  situations. 
He  gives  us  an  account  of  the  demands  of  the  lumber  workers, 
which  included  an  eight-hour  day,  a  minimum  of  $60  a  month 
with  free  board,  and  in  addition,  good  wholesome  food  pre- 
pared in  a  cook  house,  with  sufficient  help  to  keep  the  same 
in  a  clean  and  sanitary  condition,  sanitary  sleeping  quarters, 


THE    EMPLOYER    AND    THE    COMMUNITY       263 

single  spring  beds  with  good  clean  bedding  to  be  furnished 
by  the  company  free  of  charge,  and  an  extra  laundry  room 
with  shower  baths  convenient  to  the  sleeping  quarters.  In 
the  words  of  J.  W.  Girard,  logging  engineer  of  the  Na- 
tional Forest  Service,  "  It  is  the  conditions  under  which  they 
work  that  make  the  lumber  jacks  what  they  are."  9 

Urban  Housing  Conditions  for  Employes 

Housing  Problem  for  the  Employer  in  a  Large  City  or 
Suburb.  —  The  problems  of  decent  housing  and  its  re- 
lation to  securing  and  keeping  an  efficient  labor  force  are 
as  important  to  the  employer  in  the  large  city  or  in  outly- 
ing districts  within  commuting  distance  of  the  city  as  to  the 
one  in  a  new  or  distant  community,  but  his  methods  of 
facing  the  situation  must  necessarily  be  different.  The 
difficulties  in  the  building  market  emphasize  the  problem. 
Heretofore  the  speculative  builder  could  be  counted  upon 
to  supply  the  demand  for  houses  in  all  but  the  more  remote 
communities  in  mine  or  oil  fields,  but  increased  costs  of 
building  coupled  with  the  demand  for  better  houses  and 
housing  legislation  have  shown  that  this  source  alone  will 
not  meet  the  need. 

Importance  of  Length  of  Working  Day.  —  There  are  cer- 
tain fundamental  demands  for  a  workingman's  dwelling; 
low  rent,  sanitation  and  proximity  to  or  facility  in  reach- 
ing work.  The  employer  may  assisl  his  workers  to  secure 
these  necessities  in  various  ways.  A  fundamental  con- 
sideration in  housing  is  the  length  of  the  working  day.  A 
short  working  day  makes  it  possible  for  workers  to  live  a1 
greater  distances  from  their  work,  in  the  suburbs  or  out- 
lying dist licts  of  large  cities,  while  long  hours  make  it 
necessary  to  live  Dear  at  hand. 

Transportation  Facilities.  —  Arrangements  that  will 
prevent    the   overcrowding  of   transportation   facilities  will 


264  THE    HUMAN   FACTOR   IN    INDUSTRY 

also  make  available  a  wider  residence  area  and  allow  a 
greater  selection  of  living  quarters.  A  ride  of  an  hour  or 
more  in  a  train  in  which  a  seat  is  obtainable  is  probably 
not  as  tiring  as  a  ride  requiring  not  half  as  long  in  a  crowded 
street  car.  By  closing  at  hours  different  from  the  ones  usual 
in  the  community,  congestion  can  be  reduced.  The  possi- 
bility of  doing  this  by  the  cooperation  of  numerous  industries 
was  indicated  by  the  influenza  experience  in  New  York  City. 
All  industries  maintained  hours  of  opening  and  closing 
according  to  classification,  retail,  wholesale,  etc.,  specified 
by  the  Board  of  Health.  The  result  was  decreased  con- 
gestion of  transportation  facilities.10  The  Metropolitan 
Life  Insurance  Company  in  its  Home  Office  in  New  York 
makes  it  possible  for  its  employes  to  live  in  the  suburbs 
by  having  its  office  hours  from  9  until  4.30  for  the  majority 
of  employes.  During  the  war  the  United  States  Housing 
Corporation  rearranged  transportation  schedules  in  order 
to  bring  less  crowded  districts  within  the  reach  of  the  worker. 
In  one  instance  arrangements  were  made  to  have  a  train 
run  from  Perth  Amboy  to  Asbury  Park,  so  that  the  em- 
ployes of  the  copper  industries  of  Perth  Amboy  might  be 
accommodated  in  the  less  congested  town  of  Asbury  Park. 
In  the  Chicago  district  five  trains  were  put  on  and  schedules 
arranged.11  Employers  in  large  but  congested  cities  might 
find  it  possible  to  secure  the  cooperation  of  the  transporta- 
tion companies  in  placing  better  facilities  at  the  disposal 
of  the  workers. 

Homes  Registration.  —  In  order  to  help  employes  find 
suitable  housing  it  is  often  possible  for  employers  to  co- 
operate with  agencies  which  keep  records  of  available  ac- 
commodations, such  as  the  Y.  W.  C.  A.  or  the  National 
Catholic  War  Council.  Such  a  registry  can  also  be  readily 
kept  by  the  Service  Department  of  the  industry  itself. 
During  the  war  this  type  of  service  was  broadly  developed 
by  the  United  States  Housing  Corporation.     A  complete  sur- 


THE    EMPLOYER   AND    THE    COMMUNITY       265 

vey  of  houses  and  rooms  was  made  and  after  investigation 
they  were  classified  by  the  convenience  of  their  location, 
price,  cleanliness,  and  sanitation.11  A  careful  inspection  of 
dwellings  to  be  recommended  to  women  employes  is  par- 
ticularly necessary.  The  National  Catholic  War  Council 
recommends  the  following  standards  for  boarding  or  room- 
ing houses  for  girls :  recreational  facilities,  at  least  a  parlor 
where  the  girls  can  receive  their  friends ;  cleanliness  in 
household  equipment  and  management ;  if  possible,  laundry 
facilities;  proper  sanitation,  including  ventilation,  heating, 
plumbing ;  proper  moral  safeguards ;  honest  and  fair  finan- 
cial treatment  on  the  part  of  the  landlady.12 

Building  and  Loan  Association.  —  The  great  majority  of 
people  want  to  own  a  home  regardless  of  the  difficulties. 
This  desire  should  be  encouraged,  especially  if  the  family  is 
located  in  a  town  in  which  there  is  opportunity  for  em- 
ployment in  numerous  industries.  If  the  wage  earner  is 
able  to  live  on  the  outskirts  of  a  city,  either  because  the 
factory  is  so  located  or  by  reason  of  good  transportation  fa- 
cilities, he  may  be  able  to  find  relatively  cheap  land  on  which 
to  build  a  home.  In  this  case  the  employer  can  be  of  assist- 
ance to  employes  by  putting  them  in  touch  with  financial 
agencies,  by  suggesting  the  development  of  building  and 
loan  associations,  or  presenting  their  value.  These  associa- 
tions make  loans  to  members  to  enable  them  to  acquire 
homes.  The  funds  are  collected  from  members  and  loaned 
to  members.  Shares  are  comparatively  high  priced,  being 
usually  about  $200,  but  they  are  paid  in  monthly  install- 
ments, usually  about  140,  over  a  period  of  twelve  years. 
The  member  is  entitled  to  a  loan  as  soon  as  his  payments 
have  begun.13  The  security  is  the  house  upon  which  the 
loan  is  made.14  The  borrower  is  usually  required  to  own 
his  land  to  start  with,  and  although  Ik*  seems  to  lie  tem- 
porarily paying  high  rent  he  is  eventually  owner  of  the 
house.13     These  associat  ions  are  well  suited   to  the  needs  of 


266  THE   HUMAN   FACTOR   IN   INDUSTRY 

those  of  moderate  means,  but  have  not  had  wide  develop- 
ment except  in  Pennsylvania  and  Massachusetts.  In  1917 
there  were  7000  local  building  and  loan  associations  with  a 
membership  of  3,500,000,  and  the  total  assets  amounted  to 
over  $1,000,000,000.15 

Housing  Employes  in  the  Satellite  City 

The  industry  on  the  edge  of  the  great  city  is  not  of  re- 
cent origin.  South  Omaha,  for  example,  now  a  part  of  the 
city  of  Omaha,  sprang  up  around  the  stock  yards  at  a  rail- 
way junction  in  1883,  and  even  now  many  of  the  workers 
in  the  packing  plants  live  in  Omaha.  That  the  suburban 
movement  is  increasing  in  the  search  for  cheap  land,  low 
taxes,  and  room  for  expansion  and  better  lighted  buildings, 
is  shown  by  figures  gathered  by  the  Census  Bureau  from 
thirteen  "  industrial  districts."  During  a  ten-year  period, 
1899-1909,  the  number  of  workers  in  large  cities  increased 
40.8  per  cent,  while  in  neighboring  zones  or  "  satellite  cities" 
the  increase  was  97. 7. 16 

Transportation.  —  The  industry  located  in  the  satellite 
city  has  similar  problems  to  the  one  within  the  city.  For 
one  reason  or  another  the  workers  do  not  move  to  the 
suburb.  They  prefer  the  life  of  a  metropolis  because 
some  members  of  the  family  work  "  downtown "  or  the 
young  people  wish  to  be  near  the  amusement  centers. 
The  city  provides  community  activities,  but  transportation 
is  a  serious  problem. 

Factory  Specials.  —  Norwood  and  Oakley  are  examples 
of  two  suburbs  of  Cincinnati  to  which  factory  managers 
found  it  to  their  advantage  to  secure  better  transportation 
facilities  for  the  operatives,  most  of  whom  lived  in  Cincin- 
nati. Several  managers  united  in  prevailing  upon  the  Balti- 
more and  Ohio  Railroad  to  run  a  factory  special.  This 
they  were  able  to  do  at  the  outset  only  by  guaranteeing  to 


THE    EMPLOYER  AND   THE   COMMUNITY       267 

make  good  any  deficit  between  receipts  and  cost  of  pro- 
duction. Arrangements  were  also  made  with  the  street  car 
company  to  have  several  empty  cars  waiting  near  each  factory 
at  closing  time. 

Varying  Working  Hours.  —  An  employer  of  very  large 
numbers  of  workers  may  assist  in  decreasing  congestion 
in  traveling  back  and  forth  to  work  by  stopping  work  in 
different  departments  at  different  times.  The  United 
States  Playing  Card  Factory  at  Norwood  does  this  by  allow- 
ing one  half  of  its  seven  hundred  girl  employes  to  start  and 
leave  work  a  quarter  of  an  hour  earlier  than  the  other  half. 
Other  plants  allow  their  women  employes  to  leave  earlier 
than  the  men.16 

Housing  the  Employe  Where  the  Industry  is 
the  Dominant  Factor  in  the  Community 

Movement  of  Factories  Away  from  Cities. — The  back- 
to-the-land  movement  has  come  to  mean  more  than  the 
return  of  the  city  dwellers  to  agricultural  pursuits.  It 
now  also  signifies  the  removal  of  industrial  plants  from  large 
cities,  which  has  taken  place  because  of  the  lack  of  property 
for  development,  legislation  prohibiting  factories  in  certain 
city  areas  and  sometimes  because  of  the  realization  that 
life  in  a  less  crowded  district  makes  a  healthier,  happier 
working  force.  These  considerations  and  the  nature  of  some 
industries  have  resulted  in  two  types  of  industrial  com- 
munities; those  in  or  near  a  city  where  the  industry  is 
the  main  factor,  and  those  located  at  a  distance  from 
educational,  recreational  and  shopping  facilities,  and  de- 
veloping around  a  single  industry.5 

Available  Capital  for  Housing  Controlled  by  Industry.  — 
The  type  of  industrial  housing  entered  upon  because  big 
industry  could  furnish  the  only  available  capital  is  exempli- 
fied by  Akron,  Ohio.17     In    1910   the  population  of  Akron 


268  THE   HUMAN   FACTOR   IN   INDUSTRY 

was  69,000  and  in  1917  it  was  160,000.  The  manufacturers, 
realizing  the  seriousness  of  the  housing  situation,  were 
compelled  to  enter  the  real  estate  business.  The  Good- 
year Tire  and  Rubber  Company,  the  Firestone  Tire  and 
Rubber  Company,  and  the  Miller  Tire  and  Rubber  Com- 
pany have  all  been  compelled  to  develop  housing  to  some 
extent.  Various  other  communities  have  met  the  housing 
shortage  in  a  similar  way.  At  Marcus  Hook,  Pa.,  the 
American  Viscose  Company  has  developed  an  American 
Garden  Suburb  with  261  houses.  In  Philadelphia  there 
have  been  two  small  but  important  developments.  Youngs- 
town  also  has  similarly  felt  the  housing  shortage.  One  of 
the  most  important  developments  there  is  that  of  the 
Youngstown  Sheet  and  Tube  Company.  Bridgeport  is 
still  another  city  in  which  the  manufacturers  of  the  city  had 
to  take  a  hand  in  the  housing  problem.18  In  such  instances 
recreational  and  buying  facilities  do  not  enter.  The  com- 
munity can  usually  be  relied  upon  to  supply  them. 

Living  conditions  and  the  leisure  hours  of  employes  are 
of  serious  concern  to  a  remote  industry.  The  great  aggre- 
gations of  workers  brought  together  by  the  mushroom 
industries  of  war  have  indicated  the  problem  and  accelerated 
industrial  housing.  The  movement,  however,  dates  from 
the  beginning  of  the  factory  system,  and  efforts  to  provide 
adequate  facilities  have  been  made  since  that  time.  The 
colonial  manufacturer  who  established  his  mill  where  water 
power  was  available  usually  found  undeveloped  country 
and  was  forced  to  provide  accommodation  for  his  employes. 
One  project  connected  with  a  cotton  mill  in  Wilmington, 
Delaware,  dates  back  to  1831,  and  in  the  coal  regions  there 
are  houses  dating  from  1840.19  This  need  is  evident  in  the 
mining  industry,  where  shacks  or  bunk  houses  are  always 
provided.  But  even  in  these  industries,  which  must  from 
their  nature  be  other  than  permanent,  the  advantage  of 
decent   housing   is   assuming   increasing   importance.     The 


THE    EMPLOYER   AND   THE   COMMUNITY       269 

Colorado  Fuel  and  Iron  Company,  which  operates  a  large 
number  of  mines  in  four 20  Western  States,  has  acted  on  the 
hypothesis  that  a  steel-works  district  and  even  a  coal-min- 
ing camp  may  be  a  model  community.  Neat  and  com- 
fortable dwellings  have  been  substituted  for  the  proverbial 
squalid  and  unsanitary  miners'  shacks.  The  result  is  that 
numerous  camps  of  the  company  are  more  attractive  and 
healthy  than  towns  of  equal  size.21  The  various  subsid- 
iaries of  the  United  States  Steel  Corporation  have  also 
founded  isolated  industrial  towns.  The  United  States 
Coal  and  Coke  Company  at  Lynch,  Kentucky,  has  begun 
the  construction  of  comfortable,  sanitary  houses  for  its  2000 
employes  and  their  families.  Other  similar  housing  de- 
velopments by  this  same  company  are  those  at  Wilson 
Station,  Pennsylvania,  for  the  By-Product  Coke  Plant  and 
at  South  Donora  for  the  American  Steel  and  Wire  Com- 
pany.22 

Desirable  Ownership  Policy  in  Industrial  Housing.  — 
The  difficulties  that  confront  industry  in  undertaking  a 
housing  development  are  numerous.  In  securing  an  ade- 
quate although  reasonable  return  on  the  investment  great 
care  must  be  taken  that  tenants  receive  proper  protection. 
The  line  between  a  policy  that  unduly  interferes  with  the  lives 
of  employes  and  one  that  adequately  protects  the  prop- 
erty is  hard  to  draw  in  any  instance.  It  is  for  this  reason 
that  employers  have  hesitated  to  enter  the  field  of  housing 
for  workers.  They  have  ordinarily  sought  to  stimulate 
others  to  undertake  the  responsibility.  But  at  times  when 
this  mode  of  investment  brings  small  returns,  and  in  new 
communities  where  the  speculative  builders'  desire  for  the 
greatest  profit  will  injure  the  employes,  the  employer  is  forced 
to  assume  the  responsibility. 

Paternalistic  Policy  Inadvisable.  —  Perhaps  the  first 
great  housing  venture  was  that  of  the  Pullman  Company. 
Here  the  employes  were  given,  outright,  a  model  town.    The 


270  THE   HUMAN   FACTOR   IN   INDUSTRY 

president  of  the  Pullman  Company  built  and  in  a  great 
measure  regulated  the  entire  town.  Employes  were  rarely 
consulted  as  to  their  wishes  or  their  needs.  The  community 
was  conducted  for,  not  by  them.  The  ultimate  aim  was  a 
payment  to  the  company  of  at  least  4  per  cent  on  the  money 
invested,  so  that  there  could  be  no  adaptation  of  rent  to 
wages.  Trouble  resulted  from  a  situation  involving  fixed 
rents  and  sliding  wage  scales,  both  controlled  by  the  com- 
pany. In  1894,  when  wages  were  reduced  22  per  cent  and 
schedules  of  working  time  reduced,  while  rents  remained  the 
same,  the  men  struck.  As  a  result  of  the  strike  the  company 
disposed  of  its  houses,  and  to-day  the  people  of  Pullman 
provide  for  their  own  needs.16 

Laissez-Faire  Policy.  —  The  other  extreme,  the  "do  as 
little  as  possible  "  policy,  is  typified  by  the  development 
of  Gaiy.  The  company  in  this  instance  moved  into  a 
practically  new  community,  bought  enough  land  for  its  own 
use  and  that  of  its  subsidiary  companies,  but  very  little 
more.  It  used  a  small  tract  for  houses  for  its  workmen,  but 
the  number  was  small  as  compared  to  the  demands.  Thus 
speculative  land  agents  reaped  the  excess  value,  amounting 
to  $30,000,000  in  ten  years  after  its  founding,  created  by 
the  large  population  attracted  by  the  great  manufacturing 
industries.23  Had  the  steel  company  bought  all  the  land  in 
Gary,  it  might  have  conserved  the  value  for  itself  and  for  the 
inhabitants  of  the  town. 

Emphasis  on  Civic  Independence.  —  A  middle  course 
is  possible.  In  one  instance  a  model  mining  town  of  Penn- 
sylvania was  erected  by  the  employing  company,  and  about  a 
year  or  two  later  was  turned  over  to  the  communit}r,  after 
the  inhabitants  had  voted  for  its  incorporation.19  An 
English  example  of  this  freedom  within  an  industrial  village 
is  that  of  Cadbury  Bros.  Ltd.,  which  moved  its  plant  from 
Birmingham  to  Bournville.  Everything  except  some  edu- 
cational work  is  self-governed,  voluntary,  and  calls  for  some 


THE   EMPLOYER   AND   THE   COMMUNITY       271 

payment  on  the  part  of  the  employed.24  The  Connecticut 
Mills  Company  of  Danielson,  Connecticut,  states  that  there 
is  no  charity  or  paternalism  about  their  housing  scheme. 
The  company  builds  houses  and  gets  10  per  cent  return  on 
the  investment.25  The  Kaul  Lumber  Company  also  lays 
emphasis  upon  the  fact  that  the  workman  gets  nothing  for 
which  he  does  not  pay,  thus  eliminating  the  element  of 
paternalism.3  It  is  apparent  from  these  examples  that 
furnishing  homes  for  workers  involves  not  only  the  pro- 
vision of  comfortable,  convenient,  and  clean  living  quarters, 
but  the  assurance  of  civic  independence  as  well. 

After  the  employer  has  determined  upon  the  necessity 
of  housing  his  employes,  the  problems  of  finance,  of  planning 
the  town,  the  type  of  houses,  the  relative  cost  and  advan- 
tages of  different  materials,  the  standards  of  sanitation  to  be 
followed,  the  demands  of  the  employes,  the  relative  value 
of  renting  or  selling  the  houses,  and  the  necessary  restric- 
tions must  be  considered. 

Financing  Industrial  Housing.  —  Industrial  housing  may 
be  financed  in  one  of  two  ways,  either  as  a  general  overhead 
expense  or  by  a  subsidiary  company.  A  recent  investiga- 
tion indicates  that  most  housing  work  is  conducted  as  a 
general  part  of  the  employers'  principal  business.19  The 
danger  of  this  is  that  it  is  not  the  primary  business,  and  so 
will  be  neglected  and  there  will  be  no  return  for  the  invest- 
ment. If  the  housing  scheme  does  not  yield  a  return  on  the 
investment,  it  becomes  charity,  and  may  easily  develop  into 
paternalism.  Because  of  this  danger  we  notice  a  tendency 
to  create  a  subsidiary  company  whose  business  is  housing. 
"Indian  Mill/'  the  industrial  village  of  the  Norton  Com- 
pany, Worcester,  Mass.,  is  conduct  ed  by  a  subsidiary  com- 
pany,15 as  are  also  a  number  of  the  United  States  Steel 
Corporation  towns.  An  interesting  example  of  this  method 
coupled  with  the  use  of  insurance  capital  is  that  of  the  Good- 
year Heights  Realty  Company,  a  subsidiary  of  the  Good- 


272 


THE    HUMAN    FACTOR    IN    INDUSTRY 


year  Tire  and  Rubber  Company.  The  houses  are  completed, 
and  after  estimating  the  actual  cost  of  the  lot  and  build- 
ing erected  thereon  25  per  cent  is  added.  The  selling  price 
or  real  estate  value  of  the  house  is  therefore  125  per  cent 
of  the  actual  cost.  On  this  amount  two  mortgages  are 
placed.  The  first  mortgage  is  taken  by  the  Metropolitan 
Life  Insurance  Company  for  one  half  of  the  real  estate  value, 
and  the  Goodyear  Heights  Realty  Company  assumes  the 
second  mortgage.  The  interest  is  6  per  cent  on  both  mort- 
gages. When  the  development  was  first  started  the  pur- 
chasers were  asked  to  pay  no  money  down,  simply  move 
into  the  house  and  begin  making  monthly  payments.  It 
was  later  decided  that  a  small  original  payment  would  make 
the  plan  more  of  a  business  proposition.  Two  per  cent  is 
the  amount  to  be  paid  down.  At  the  end  of  five  years,  if 
the  purchaser  is  still  in  the  employ  of  the  Goodyear  Tire 
and  Rubber  Company  and  if  he  has  not  sold  or  transferred 
the  title  to  his  property,  the  company  will  return  25  per 
cent  to  him  in  the  form  of  a  credit  on  his  account.26  That 
is,  the  company  sells  the  house  at  actual  cost.  The  follow- 
ing table  gives  the  semi-monthly  payments  to  be  made  on 


Table  op  Payments  Required  on  Properties  at  Values  Given 


Semi-Monthly  Payments  (15  Years) 

p 

Real  Estate 
Value 

First  5  Yeabs 

Next  7  Years 

Last  3  Years 

$1,984.00 

$2,480.00 

$11.27 

$7.31 

$3.86 

2,288.00 

2,860.00 

13.01 

8.45 

4.44 

2,682.00 

3,352.50 

15.25 

9.86 

5.19 

2,699.00 

3,375.75 

15.34 

9.88 

5.22 

2,801.00 

3,501.25 

15.92 

10.24 

5.43 

2,808.00 

3,510.00 

15.97 

10.26 

5.43 

2,845.00 

3,556.25 

16.16 

10.47 

5.53 

2,896.00 

3,620.00 

16.54 

10.67 

5.22 

2,998.00 

3,747.50 

17.06 

11.03 

5.75 

THE    EMPLOYER   AND   THE    COMMUNITY       273 

property  whose  real  estate  values  vary  from  $2480  to  $3750. 
The  2  per  cent  original  payment  is  not  included.27 

Importance  of  Town  Planning.  —  Few  employers  have 
realized  the  importance  and  economy  of  scientific  plan- 
ning for  a  housing  development.  Of  213  company-housing 
schemes  recently  investigated  only  15  per  cent  had  given 
consideration  to  the  technique  of  town  planning.19  We 
have  not  profited  by  the  experience  of  England,  whose  garden 
cities  are  well  known.  The  town  planning  features  came  as  a 
result  of  the  garden  city  movement.  In  1899  the  Garden 
City  Association  was  formed  and  in  1903  Letchworth,  the 
first  garden  suburb,  was  organized.  Large  employers 
have  realized  the  advantages  of  well-planned  garden  suburbs 
and  have  built  such  suburbs,  among  which  are  Port  Sunlight, 
the  home  of  the  Lever  Bros.  Ltd.,  manufacturers  of  soap, 
and  Bournville,  near  Birmingham.13  As  a  result  of  the 
initiative  of  private  enterprise  the  House,  Town  Planning, 
etc.  Act  was  passed  in  1909  which  gives  municipalities  power 
to  regulate  housing  developments.23 

A  few  employers  in  the  United  States  have  realized  that 
in  order  to  insure  a  healthy,  convenient,  and  beautiful 
city  it  is  necessary  to  plan  carefully  the  relations  between 
dwellings  and  factories,  to  district  the  cities  properly  and  to 
insist  upon  adequate  building  regulations,  means  of  trans- 
portation, and  the  wise  distribution  of  parks  and  facilities 
for  recreation.15  A  town  planner  was  consulted  before  the 
Viscose  Industrial  Village  was  built.  Here  we  find  a  com- 
bination of  row  and  "  twin  "  houses  for  single  families, 
boarding  houses  for  unmarried  workers  of  each  sex,  and  in 
addition  a  community  store  and  recreation  building.  An- 
other example  is  "Indian  Hill."  The  besl  possible  grades 
have  been  secured  for  main  streets,  and  only  slightly  steeper 
ones  for  the  non-traffic  ones.  The  situation  of  the  com- 
munity center  combines  proper  geographic  location  with 
beauty  of  outlook.     Reservations  have  been  made  for  park 


274  THE    HUMAN   FACTOR   IN    INDUSTRY 

areas,  and  a  shore  drive  reserves  the  banks  of  the  lake  to 
the  city  for  all  time.28  Other  carefully  planned  industrial 
villages  are  16  Fairfield,  one  of  the  United  States  Steel  Cor- 
poration's steel  towns ;  Kaulton,  built  by  the  Kaul  Lumber 
Company ;  and  the  Overlook  Colony,  Claymont,  Delaware, 
developed  by  the  General  Chemical  Company.13 

Most  industrial  housing  projects  have  been  developed 
without  attention  being  given  to  proper  location  of  dwell- 
ings. After  the  site  of  the  factory  has  been  determined, 
houses  for  the  workers  have  been  grouped  about  it  without 
regard  for  adequate  consideration  of  sanitation,  conven- 
ience, exposure  or  water  supply.  Town  planning  experts 
should  be  consulted  by  the  employer  for  methods  of  meet- 
ing the  needs  of  both  plant  and  population. 

Type  of  House.  —  There  is  no  standard  type  for  company 
houses,  but  four-,  five-,  and  six-room  houses  are  most  preva- 
lent.19 There  is  also  a  choice  to  be  made  between  the  de- 
tached house  and  the  row  or  group  dwelling.  In  this  coun- 
try there  is  a  general  dislike  for  the  group  house  because  it 
has  been  associated  with  long  rows  of  stereotyped  houses. 
But  the  choice  does  not  lie  between  dreary  monotonous 
group  houses  and  well-designed  detached  houses.  In  either 
case  the  house  may  be  well  designed  and  attractive  or  badly 
constructed  and  ugly. 

A  recent  development  of  the  group  house  is  that  of  Sawyer 
Park,  near  Williamsport,  Pennsylvania.  While  it  is  not 
essentially  an  employers'  scheme  it  is  sufficiently  small 
for  the  employer  forced  into  the  housing  business  to  con- 
sider it  a  hotel  for  certain  developments.  There  are  three 
types  of  houses  :  two-family  houses,  semi-detached  or  double, 
four-family  houses,  and  six-family  houses.  They  are  at- 
tractive in  design,  picturesque,  and  quaint.29 

An  example  of  a  well-designed  detached  house  develop- 
ment is  Eclipse  Park  at  Beloit,  Wisconsin,  for  the  employes 
of  the  Fairbanks  Morse  Company.     Here  one  finds  four-, 


THE    EMPLOYER   AND    THE    COMMUNITY       275 

five-,  six-,  seven-,  and  eight-room  houses.  Although  there 
are  five  types  of  houses  there  are  about  forty  different 
designs  or  styles  of  houses.  Monotony  has  been  avoided 
and  at  the  same  time  the  architectural  harmony  has  been 
kept.  In  the  words  of  Lawrence  Veiller,  "  This  develop- 
ment gives  promise  of  being  one  of  the  most  artistic,  and 
attractive  thus  far  evolved  in  this  country."  30 

The  conditions  which  determine  the  most  desirable  kind 
of  house  are  the  character  of  the  labor,  climatic  conditions, 
and  building  costs.  While  the  Sawyer  plan  and  that  at 
Eclipse  Park  are  among  the  best  developments  in  this  coun- 
try, the  houses  are  too  expensive  for  all  but  the  skilled 
worker.  Other  experiments  in  housing  which  provide 
shelter,  sanitation,  provisions  for  family  life  and  aesthetic 
pleasure,  at  lower  cost,  have  been  made.  At  Danielson,  Con- 
necticut, are  some  very  attractive  and  less  expensive  houses. 
They  have  light  rooms  and  sanitary  conveniences.  Ex- 
teriors vary  in  both  style  and  material,  some  are  shingled, 
some  are  clapboarded,  and  some  are  stucco. 

Housing  Costs.  —  With  good  judgment  it  is  always 
possible  to  build  well-designed  and  attractive  houses  within 
the  purchasing  power  or  renting  ability  of  the  wage  earner. 
This  is  the  most  important  consideration  in  industrial  hous- 
ing. A  wage  (miner  who  is  apportioning  his  income  properly 
will  not  spend  more  than  a  week's  wages  for  a  month's  rent. 

A  recent  study  of  earnings  in  factories  of  New  York  State, 
March,  1919,  which  may  be  considered  as  indicative  of  the 
general  wage  situation,  gives  the  lowest  average  yearly 
earnings  as  about  S700,  the  highest  as  aboul  S1800  and  the 
average  as  about  S1200.31  The  man  earning  $1200  cannot 
afford  to  pay  more  than  $300  annual  nut.  anil  if  the  house 
is  to  yield  a  9  per  cent  return  on  the  investment  it  must 
not  cost  more  than  about  $2900,  and  for  those  earning  less 
the  cost  must  be  correspondingly  lower.  The  type  of  ma- 
terial which  is  best  from  the  standpoint  of  economy,  health, 


276  THE    HUMAN    FACTOR    IN    INDUSTRY 

permanency,  and  durability  depends  upon  local  supply  and 
climatic  conditions. 

Frame  Construction.  —  Frame  construction  is  usually 
found  in  coal-mining  communities.  These  cottages  cost 
about  $1000  and  rent  for  about  $2  per  room  per  month.32 
They  usually  lack  adequate  plumbing  and  the  exteriors  are 
monotonous.  Some  efforts  have  been  made  to  improve  the 
standard  frame  dwelling,  notably  in  Danielson,  Conn.,  a 
development  started  in  1915  by  mill  officials,  where  the  cost 
has  been  about  $1900.  In  South  Barre,  Mass.,  the  Barre 
Wool  Combing  Company  has  built  some  frame  houses  cost- 
ing about  $1950  per  family  in  1912. 

Brick  Construction.  —  Brick  construction  has  a  com- 
paratively high  initial  but  low  maintenance  cost.  The  Penn- 
sylvania Coal  and  Coke  Company  built  some  brick  cottages 
before  1917  costing  between  $1000  and  $1600.  These  dwell- 
ings have  two  rooms  on  each  floor,  a  small  kitchen  in  a  rear 
extension,  and  in  some  cases  a  bathroom  has  been  added. 

Hollow  Tile  Construction.  —  In  1913-1914  a  number  of 
hollow-tile  houses  were  built  for  the  employes  of  the  Lehigh 
Coal  and  Navigation  Company  at  a  cost  of  construction  of 
about  $1100  for  a  bungalow  with  no  cellar  or  heat,  about 
$1950  for  a  five-room  house  with  cellar  bath,  and  heat,  and 
about  $2300  for  a  six-room  house  with  the  same  conveniences. 

Concrete  Construction.  —  The  Ludlow  Manufacturing 
Company  used  concrete-block  construction  for  its  em- 
ployes' houses,  with  cost  in  1913  from  $300  to  $350  per  room. 
Poured  concrete  was  used  for  the  40  dwellings  completed 
in  1912  for  employes  of  the  Delaware,  Lackawanna,  and 
Western  Railroad  at  Nanticoke.  The  cost  was  about  $1160 
for  each  dwelling,  which  contained  six  rooms  but  no  bath- 
room. Window  boxes  and  shrubbery  are  used  to  relieve 
the  architectural  monotony. 

Stucco  Construction.  —  Stucco  has  been  used  for  the 
construction  of  houses  by  the  Goodyear  Tire  and  Rubber 


THE    EMPLOYER   AND   THE    COMMUNITY       277 

Company.  This  development  was  begun  in  1912.  A 
number  of  different  styles  of  cottages  have  been  built.  The 
costs  vary  from  $1800  to  $2500.13  The  stucco  houses  at 
Eclipse  Park  built  in  1917  cost  between  $2700  and  $2800 
while  the  houses  in  the  Sawyer  Park  development  of  1917— 
1918,  many  of  which  are  stucco,  sell  for  82935-$3335. 
;■  Winthrop  A.  Hamlin  sums  up  the  relative  possibilities 
of  the  various  types  of  materials  as  follows : 

'Frame  construction  seems  likely  to  decrease  because  of  the 
generally  increasing  cost  of  lumber.  .  .  .  But  in  many  localities 
wood  remains  cheaper  than  other  building  materials.  It  will  also 
tend  to  be  used  where  social  changes  are  occurring  rapidly.  .  .  . 
Brick  is  to  be  recommended  wherever  local  conditions  are  such  that 
it  can  be  cheaply  secured.  Hollow  tile  is  in  somewhat  the  same 
class,  though  requiring  further  development  before  its  possibilities 
can  be  fairly  judged.  .  .  .  Concrete,  especially  "  poured  "  concrete, 
is  of  value  chiefly  in  large  scale  housing  undertakings.  .  .  .  The 
progress  of  stucco  depends  especially  on  the  certitude  of  good  work- 
manship in  its  use.32 

The  Cost  of  Land.  —  Local  conditions  will  always  de- 
termine the  type  of  house  needed.  A  universal  demand  will 
exist  for  economical  building.  That  this  is  coming  to  be 
appreciated  is  illustrated  by  the  advertisement  of  a  build- 
ing company  which  states  that  its  objed  is  to  "  deal  in 
economic  housing  as  a  standard  commodity  by  the  manu- 
facture and  erection  of  low-cost  dwellings  and  tenements."  33 
But  as  important  as  building  costs  is  the  cost  of  land.  Cheap 
land  permits  low  rents;  high  land  means  high  rents.  The 
employer  in  the  new  community  has  the  opportunity  of 
taking  advantage  of  comparatively  cheap  land,  but  he  often 
allows  the  land  speculator  to  gain  control.  This  was  il- 
lustrated at  Gary,  as  indicated   above. 

Richard  S.  Childs,  Secretary  of  the  Committee  on  In- 
dustrial Towns,  New  York  City,  has  suggested  the  plan  of 
meeting  the  problem  of  increasing  land   values  by  having 


278  THE   HUMAN   FACTOR   IN   INDUSTRY 

the  employing  company  create  a  limited  dividend  land  com- 
pany which  would  rent,  not  sell,  the  land.  The  income  from 
land  rentals  at  the  rate  of  4  per  cent  on  the  advanced  land 
values  would  be  enough  to  amortize  the  investment  and 
leave  twice  as  much  money  for  community  purposes  as  the 
town  would  normally  obtain  from  taxation.  At  least,  that 
is  the  way  it  figures  out  in  Gary  and  Lackawanna.  The 
land  company  could  afford  to  charge  less  than  the  traffic 
would  bear,  or  preferably  close  to  what  private  landowners 
would  exact,  and  use  the  revenues  for  services  which  would 
reduce  the  cost  of  housing.34 

Housing  Standards.  —  The  standards  of  sanitation  for 
company  housing  schemes  vary,  but  a  survey  of  53,176 
company  houses  shows  that  18,649  or  35  per  cent  have  no 
modern  inside  sanitary  conveniences.19  Such  an  oversight 
is  unfortunate.  Many  firms,  however,  have  realized  the  im- 
portance of  developing  high  standards,  and  during  the  war 
the  government  established  certain  standards  for  indus- 
trial housing  projects.  "  Standards  Recommended  for  Per- 
manent Industrial  Housing  Developments,"  n  were  pub- 
lished in  a  valuable  handbook  by  the  Bureau  of  Industrial 
Housing  and  Transportation.  In  brief,  the  standards  for  a 
single-family,  a  two-family  house,  or  a  single-family  house 
with  rooms  for  not  more  than  three  boarders  are  as  follows : 

Arrangement.  Row  or  group  houses  normally  not  to  be  more 
than  two  rooms  deep. 

Basements.     No  living  quarters  to  be  in  basements. 

Closets.     Every  bedroom  must  have  a  closet. 

Furniture  space.  Location  of  beds  not  to  interfere  with  windows 
or  doors. 

Lighting.     Electricity  preferred. 

Materials.     Dependent  upon  local  supply. 

Ventilation.  Every  room  to  have  at  least  one  window  opening 
directly  to  the  outer  air. 

Healing.     Provisions  to  be  made  for  heating  houses. 

Plumbing.     Bathtub,  lavatory,  kitchen  sink,  washtubs,  toilet. 


THE   EMPLOYER   AND   THE   COMMUNITY       279 

Rooms.  For  higher-paid  workers  five-room  type  preferred.  For 
lower-paid  workers  four-room  type  desirable. 

Lodgers.  If  lodgers  are  to  be  taken,  additional  single  rooms 
should  be  provided. 

Fairfield  Heights  of  the  Fairfield  Steel  Company  conforms 
to  a  high  standard  in  regard  to  heating,  lighting,  plumbing, 
and  space.  The  sizes  of  rooms  and  height  of  ceilings  con- 
form to  government  standards.22 

Another  set  of  interesting  standards  well  worthy  of  con- 
sideration is  that  suggested  by  English  women,  the  wives 
of  workmen.  The  following  is  an  outline  of  demands  based 
on  experience.35 

1.  A  bath  is  necessary  in  a  separate  room,  preferably  on  the 
second  floor,  except  in  mining  districts,  when  the  workman  must  have 
his  bath  immediately  upon  entering  the  house. 

2.  The  house  should  contain  three  rooms  on  the  ground  floor, 
parlor,  living  room,  and  kitchen. 

3.  Hot  water  is  an  essential  comfort. 

4.  Three  bedrooms  are  the  required  minimum. 

High  Standards  Always  Possible.  —  That  high  standards 
may  be  maintained  even  in  company  barracks  is  illustrated 
by  the  barracks  of  the  Hercules  Powder  Company,  Dover, 
N.  J.,  which  are  steam  heated,  electric  lighted,  and  supplied 
with  hot  and  cold  showers.36  Bunk  houses  also  may  be  sani- 
tary and  agreeable,  as  is  shown  by  the  portable  bunk  houses 
for  construction  workers  used  by  the  Pennsylvania  Rail- 
road. These  arc  of  white  pine,  lighted  by  electricity, 
equipped  with  screens,  stationary  washstands  and  hot  and 
cold  water,  and  in  camps  which  are  sufficiently  large  and 
where  drainage  is  possible,  shower  baths  are  provided.87 

Housing  standards,  in  addition  to  minimum  health  re- 
quirements, should  consider  the  habits  and  standard  of  liv- 
ing of  the  people  who  will  occupy  the  houses.  One  writer 
suggests  that  the  size  of  the  kitchen  marks  inversely  the 


280  THE   HUMAN   FACTOR   IN   INDUSTRY 

social  progress  of  the  worker's  family.  When  the  income 
is  very  low  the  kitchen  is  perforce  the  family  living  room 
and  should  be  proportionally  ample ;  for  the  middle  in- 
come group  there  should  be  a  "  best  room  "  in  which  to  re- 
ceive callers;  higher-income  groups  demand  a  dining  room 
in  addition.32 

Standards  Varied  for  Different  Classes  of  Labor.  —  The 
difficulties  connected  with  the  development  of  cheap  houses 
and  the  problems  in  connection  with  their  upkeep  have  caused 
company  housing  to  cater  especially  to  higher-paid  workers. 
Although  many  companies  supply  houses  to  all  classes  of 
employes,  preference  is  naturally  given  to  the  higher-paid 
workman,  who  is  most  difficult  to  retain.19  There  are, 
of  course,  notable  exceptions.  The  house  development 
at  Wilson  Station,  Pa.,  for  the  By-Product  Coke  Plant, 
provides  for  different  classes  of  workers.22  The  American 
Rolling  Mill  Company  at  Middletown,  Ohio,  provides  houses 
for  foreigners.38  At  Morgan,  Pa.,  provision  is  made  for 
various  types  of  workers.22  In  the  Viscose  Industrial 
Village  one  finds  houses  of  varying  size  renting  from  $12 
to  $17  a  month. 

Single  Worker.  —  It  is  also  important  to  provide  for  the 
single  men  and  women,  and  in  doing  so  to  remember  that 
"  Liberty  is  worth  considerable  inconvenience."  One  Eng- 
lish firm  had  no  applicants  for  a  proposed  hostel  because 
of  the  many  rules  regulating  personal  conduct.39  On  the 
other  hand,  the  Waltham  Watch  Company,  Waltham, 
Mass.,  successfully  maintains  a  large  boarding  house  for  its 
women  employes.  No  restraint  is  placed  upon  the  freedom 
and  movements  of  the  inmates.  A  boarding  house  for  men 
is  provided,  but  not  maintained  by  the  company,  in  which 
the  company  prescribes  the  rates.  No  one  is  required  to 
live  or  board  at  either  of  these  two  houses.  There  is  free- 
dom in  every  respect.  Their  existence  there  lowered  the 
prices  for  board  and  room  in  the  entire  community.20 


THE    EMPLOYER   AND    THE    COMMUNITY       281 

Renting  or  Selling  Homes  for  Workers.  —  Whether 
houses  should  be  sold  to  workers  is  of  importance.  There 
is  an  old-fashioned  idea  that  the  laborer  should  own  his 
own  home ;  but  that  this  is  no  longer  popular  is  shown 
by  a  survey  of  213  company-housing  plans,  out  of  which 
only  33  reported  the  practice  of  selling  houses  to  their 
employes.19  The  employer  may  wish  to  encourage  home 
owning  in  order  to  release  capital  for  the  expansion  of 
the  industry,  to  stabilize  the  working  force,  and  to  allow 
people  to  satisfy  their  desire  for  home  ownership.  This  is 
impractical  where  the  industry  is  a  temporary  one.  In  a 
one-industry  community  also,  home  owning  may  serve 
to  create  rather  than  allay  dissatisfaction,  since  it  makes 
the  employe  feel  that  he  has  lost  the  ability  to  leave 
his  job  at  will  or  to  oppose  the  employer  in  questions  of 
working  conditions  and  wages.  A  man  does  not  want 
to  own  a  house  unless  he  can  get  rid  of  it  if  he  loses  his 
job,  or  if  the  job  ceases  to  exist  in  the  community,  or  if 
he  suspects  that  home  owning  is  a  weapon  in  the  hands 
of  the  employer  in  case  of  labor  trouble.  For  these 
reasons  we  usually  find  that  when  houses  are  sold  to 
workers  the  last  is  safeguarded.  In  Gary  and  Fairfield, 
provision  is  made  for  buying  back  the  house  if  the  em- 
ploye so  desires.  No  such  provision  is  made  in  Granite 
City,  but  as  no  mortgage  has  ever  been  foreclosed  and 
in  several  instances  houses  have  been  taken  back  and  the 
purchase  price  returned,  the  result  has  been  the  same.16  In 
towns  such  as  Akron  the  problem  is  not  serious.  There 
is  a  more  ready  market  in  case  of  sale  and  other  opportu- 
nities for  employment  in  numerous  industries. 

General  Housing  Restrictions.  —  The  problem  of  restric- 
tions is  an  important  one  in  an  industrial  as  in  any  other  resi- 
dential development.  One  owner  may  have  high  standards 
and  keep  his  property  in  good  condition  while  his  neighbor 
may   be   slovenly.     The   Goodyear   Rubber   Company    has 


282  THE    HUMAN    FACTOR    IN    INDUSTRY 

introduced    several    restrictions   which    have    been    proved 
acceptable,  as  follows  : 40 

1.  Property,  with  the  exception  of  specified  areas,  shall  be  used 
for  private  and  residential  purposes  only.  There  shall  be  no  trade 
or  business  inconsistent  with  the  occupation  for  residential  purposes. 
It  is  unlawful  to  use  any  of  the  property  as  a  dumping  ground. 

2.  No  residence  shall  be  built  on  any  lot  or  lots  costing  less  than 
the  required  minimum.  This  minimum  is  from  $1800  to  $2500, 
according  to  the  location. 

3.  The  location,  material  and  designs  are  subject  to  the  approval 
of  the  Goodyear  Heights  Realty  Company's  landscape  gardener 
and  architectural  advisers. 

4.  No  building  shall  be  erected  on  any  lot  with  its  front  wall 
nearer  the  street  than  15  to  25  feet,  depending  upon  the  location. 

5.  No  porch,  or  minor  part  of  a  house  shall  project  more  than 
5  feet  nearer  the  street  than  the  building  line. 

6.  Only  one  residence  shall  be  built  on  any  lot. 

7.  No  fence  or  solid  obstruction  shall  be  built  nearer  the  front 
than  60  feet. 

8.  A  barn  or  garage  must  be  of  the  same  material  as  the  house. 

9.  Violation  of  any  of  the  restrictions  gives  the  Goodyear  Heights 
Realty  Company  the  right  to  enter  the  property  and  remove  the 
objectionable  features  at  the  owner's  expense. 

Community  Activities 

Where  the  employer  must  assume  responsibility  for  the 
housing  of  his  employes  it  may  also  be  his  duty  to  assist 
in  the  provision  of  a  certain  community  life.  Individual 
freedom  is  precious  and  should  be  carefully  guarded.  But 
in  isolated  communities  and  towns  where  there  are  no 
agencies  to  provide  for  community  needs  the  employer  can 
hardly  avoid  his  responsibility.  The  range  of  these  activ- 
ities is  wide  and  may  include  cooperative  stores,  health 
work,  gardens,  better  parks  and  playgrounds,  clubs,  and 
schools.  In  a  large  city  educational  and  recreational  activ- 
ities are  provided  by  the  community  and  the  cooperation 
of  existing  nursing  agencies  may  be  secured  to  take  care  of 


THE    EMPLOYER  AND   THE   COMMUNITY       283 

the  health  work.  When  the  industry  is  remote,  or  a  large 
factor  in  the  community,  the  employer  may  through  the 
services  he  renders  the  people  develop  a  sense  of  civic  re- 
sponsibility. 

Reducing  the  Cost  of  Living  by  the  Cooperative  Store.  — 
Every  employer  is  directly  concerned  with  the  purchasing 
power  of  the  employes'  wages.  "  The  value  of  wages  depends 
not  upon  the  amount  of  money  in  the  pay  envelope,  but 
upon  what  the  money  will  buy."  This  has  been  realized 
by  many  employers  when  it  has  become  evident  that  in  spite 
of  wage  increase  employes  were  still  having  difficulties  in 
making  ends  meet.  The  Dodge  Manufacturing  Company 
sought  to  solve  the  problem  by  organizing  an  employes' 
cooperative  club  to  start  a  "  commissary."  A  survey  of 
the  city  showed  that  there  was  an  unnecessary  multiplication 
of  small  stores.  In  joining  the  club  each  member  author- 
izes the  paymaster  to  pay  the  club  treasurer  five  dollars, 
and  to  pay  a  similar  amount  each  time  the  member  draws 
goods  amounting  to  more  than  his  balance  in  the  club 
treasury.  No  deliveries  are  made  and  articles  are  sold  in 
uniform  amounts.  Any  profits  go  to  the  Employes'  Bene- 
fit Association,  but  there  is  no  intention  to  make  the  store 
do  more  than  carry  itself.  The  effect  on  the  community 
of  this  store  has  been  to  bring  down  the  prices  of  staples 
which  are  handled  by  both  commissary  and  regular  stores.41 

Another  attempt  to  reduce  the  cost  of  living  for  employes 
is  that  of  the  Cooperative  Store  of  the  Metropolitan  Life 
Insurance  Company  of  New  York  City.  The  employes 
run  the  store,  but  the  rent  and  salary  of  two  clerks  are  paid 
by  the  company.  Goods  are  sold  for  cash  only,  and  at  a 
price  which  will  cover  the  overhead  costs,  which  are  not 
paid  by  the  company.  The  annual  business  done  is  about 
$120,000.     This  store  handles  clothing  as  well  as  foodstuffs. 

Company  Store  in  Small  Community.  —  In  isolated  com- 
munities the  company  store  had  early  origin.     In  England 


284  THE   HUMAN   FACTOR   IN   INDUSTRY 

the  "  truck  "  system  is  the  term  which  denotes  payment 
in  kind  or  otherwise  than  in  cash.  Twenty  States  of  the 
United  States  have  passed  laws  which  regulate  this  prac- 
tice to  some  extent.  "  Cash  means  freedom."  42  It  per- 
mits the  wage  earner  to  buy  where  and  what  he  wants, 
but  even  with  this  safeguard  a  store  may  be  a  dangerous 
weapon  in  the  hands  of  the  employer  in  an  isolated  com- 
munity. In  the  city,  employes  on  strike  may  trade  at  an- 
other store,  but  this  they  are  unable  to  do  when  the  com- 
pany's store  is  the  only  available  source  of  supply.  Very 
little  information  is  available  as  to  the  present  status  of 
these  stores.  The  employe  is  protected  to  some  extent  by 
legislation,  but  various  reports  tell  us  that  such  stores  still 
exist  in  modified  forms  in  mining  and  steel  towns. 

Thomas  Darlington  reports  as  follows  after  a  visit  to  a 
Colorado  Fuel  and  Iron  Company's 21  operations : 

In  every  town,  and  especially  in  those  located  at  a  distance  from 
centers  are  to  be  found  excellent  company  stores  where  almost  all 
the  necessaries  of  life  can  be  purchased  at  reasonable  rates,  of 
better  quality  and  at  lower  prices  than  could  be  given  by  non- 
company  stores. 

In  the  isolated  community  we  find  the  greatest  need  for 
true  cooperation.  Company  stores  in  Russia  have  become 
a  part  of  the  Cooperative  Movement  and  their  example 
might  be  followed  here.  The  employes  of  one  industry 
living  together  in  a  small  community  ought  to  form  a  suit- 
able group  for  cooperation.  The  members  would  be  closely 
bound  together  by  social  as  well  as  business  intercourse. 
The  mine  workers  of  Illinois  have  organized  very  successful 
truly  cooperative  stores.  Here  the  union  as  well  as  the 
common  occupation  have  been  the  basis  of  success.  The 
benefits  arising  from  cooperative  purchasing  and  distribution 
which  would  make  it  pay  the  employer  to  encourage  such 
organizations  are  stated  by  Mr.  J.  P.  Warbasse  as  follows : 


THE   EMPLOYER   AND   THE   COMMUNITY       285 

In  some  industrial  communities  it  has  been  shown  that  by  co- 
operative organization  it  is  possible  to  increase  the  worker's  wage 
the  equivalent  of  one  dollar  a  day.  .  .  Cooperative  purchasing  and 
distribution  mean  better  goods,  freedom  from  adulterations,  free- 
dom from  short  weights  and  saving  in  the  expense  of  advertising. 
It  also  means  better  contentment  among  the  workers  and  more 
stability.  .  .  .  The  incentive  to  move  is  diminished.  The 
incentive  to  become  established  and  create  a  permanent  home  is 
increased.43 

Educational  Value  of  So-called  Cooperative  Stores.  — 
Although  a  majority  of  cooperative  stores  in  the  United 
States  have  failed  because  of  lack  of  leadership,  poor  manage- 
ment, lack  of  legal  safeguards  and  unfavorable  environ- 
ment,44 there  seems  to  be  no  reason  why  the  employes  of 
one  company  should  not  furnish  a  sufficiently  homogene- 
ous group  for  a  successful  cooperative  store,  providing  the 
other  difficulties  are  overcome.  The  employer  should  be 
able  to  furnish  the  much  needed  advice  in  regard  to  financial 
matters  and  general  guidance.  The  great  Dumber  of  so- 
called  cooperative  stores  in  part  financed  by  the  employing 
company  are  not  truly  "cooperative,"  bul  they  axe  steps 
in  the  right  direction.  Pending  the  development  of  co- 
operative buying  on  a  large  scale,  as  is  done  in  Greal  Brit- 
ain and  in  continental  countries,  much  can  be  accomplished 
by  attempts  fostered  by  industrial  establishments. 

Gardens  for  Employes.  — The  problem  of  providing  gar- 
dens lias  been  considered  by  some  companies  to  increase 
the  contentment  of  the  workers  and  to  improve  the  ap- 
pearance of  the  community.  The  ideal  of  a  house  and 
garden  for  every  family  is  absurd,  because  what  is  play 
for  some  is  drudgery  for  others.  In  aboul  one  third  of  233 
company-housing  schemes  gardening  was  encouraged  by 
means  of  prizes.19  This  is  done  most  often  in  isolated  in- 
dustrial towns,  bul  one  example  of  an  industry  b  a  large 
town  which  has  laid  emphasis  upon  gardening  to  beautify 
the  city  and  at  the  same  time  to  provide  a  desirable  form 


286  THE    HUMAN    FACTOR   IN    INDUSTRY 

of  recreation,  is  the  National  Cash  Register  Company  at 
Dayton,  Ohio.  The  Boys'  Garden  Company  was  incor- 
porated in  1910,  with  forty  boys  from  ten  to  fifteen  years 
of  age  as  stockholders,  and  a  capital  stock  of  forty  dollars. 
The  parents  of  these  children  need  not  be  employes  of  the 
company.  A  two-year  course  in  gardening  is  given  under 
an  expert  gardener.  The  produce  is  sold  to  the  officers' 
lunch  room  and  prizes  are  awarded  for  the  best  garden 
and  the  best  bookkeeping.  This  companj^  also  offers  prizes 
for  the  best  flower  garden.  A  few  isolated  instances  such 
as  this  may  be  found,  but  in  general  such  work  is  better  left 
to  one  of  the  various  gardening  associations.45 

In  remote  communities,  and  especially  where  foreigners 
are  employed,  one  finds  much  encouragement  being  given  to 
gardening.  Prizes  are  often  offered  for  the  best  garden. 
The  American  Bridge  Company  offers  twelve  prizes,  one 
$10.00  first  prize,  one  second  prize  of  $5.00,  and  ten  prizes 
of  $1.00  each.  The  foreigners  know  how  to  raise  vegetables 
and  flowers.  They  like  it  and  it  helps  to  reduce  the  cost  of 
living.  For  many  years  the  United  States  Steel  Company 
corporation  has  offered  special  inducements  to  its  foreign 
employes  to  utilize  vacant  ground  for  raising  vegetables, 
and  similar  encouragement  is  often  given  to  the  develop- 
ment of  home  gardens.  The  quantity  of  vegetables  raised 
is  frequently  beyond  the  needs  of  the  community,  and  much 
is  wasted.  The  Oliver  Mining  Company  solved  this  prob- 
lem by  building  several  vegetable  cellars  in  its  mining  towns 
in  the  Minnesota  Range.  Individual  bins  with  individual 
lockers  were  found  to  be  most  satisfactory.22 

Health  Work.  —  The  help  of  the  employer  in  maintain- 
ing the  standards  of  a  small  community  is  sometimes  neces- 
sary. The  Ludlow  Manufacturing  Company  built  an  ex- 
cellent little  hospital  and  presented  it  to  the  town  of  Ludlow. 
The  company  meets  all  the  expenses  incident  to  the  care 
of  the  people  of  the  town,  most  of  whom  are  employes 


THE   EMPLOYER  AND   THE   COMMUNITY       287 

of  the  company.  Another  company  which  interests  itself 
in  health  work  is  the  United  States  Playing  Card  Com- 
pany, which  employs  visiting  nurses  who  spend  part  of  their 
time  visiting  in  the  houses  of  sick  employes  and  their 
families.46  The  Clark  Thread  Company  of  Newark,  New 
Jersey,  employs  a  visiting  nurse  who  is  mainly  an  instructor 
giving  nursing  care  when  necessary.  She  teaches  cooking, 
infant  care,  the  feeding  of  children,  home  nursing,  gardening 
and  marketing.47  The  Bush  Terminal  Company  also  real- 
izes the  advantage  of  extending  health  work  to  the  com- 
munity, so  at  Terminal  City  we  find  a  hospital  and 
dispensary  built  by  the  company.48  The  New  Jersey  Zinc 
Company  at  Palmerton,  New  Jersey,  employs  a  settlement 
worker  who  speaks  foreign  languages  and  who  helps  to  im- 
prove the  housing  conditions.49 

An  example  of  excellent  community  health  work  in 
Southern  mill  towns  is  given  by  Mrs.  Laurie  Jean  Reid, 
Chief  Nurse  at  Extra  Cantonment  Zone  No.  14.  Mrs. 
Reid  found  that  one  manufacturing  company  with  five 
cotton  mills  in  Georgia  had  done  no  public  health  work. 
As  the  result  of  her  efforts,  the  company  has  established 
at  each  of  its  villages  a  milk  station  and  a  dispensary  in 
charge  of  a  nurse.  There  is  also  a  day  nursery  in  charge  of  a 
matron,  and  in  one  particularly  isolated  village  the  com- 
pany has  put  up  a  hospital.  In  one  village  a  laundry  is 
being  built  and  a  sterilizer  installed  for  the  village  and  a 
bath  house  with  plunge  and  shower.50 

The  Colorado  Fuel  and  Iron  Company  has  stationed 
experienced  nurses  in  several  of  its  camps.  These  women,  in 
addition  to  their  regular  nursing  service,  go  into  the  houses 
of  the  employes  and  teach  hygiene. 

The  health  work  of  the  United  States  Steel  Corporation 
and  its  subsidiaries  includes  a  visiting  nursing  service.  The 
services  of  the  nurse  axe  offered  free  by  the  company  to  the 
families  of  the  employes,  but  axe   not  forced  upon  them. 


288  THE    HUMAN   FACTOR   IN   INDUSTRY 

No  nurse  ever  visits  a  house  unless  requested  to  do  so  by  a 
member  of  the  family. 

The  Tennessee  Coal,  Iron,  and  Railroad  Company  has 
added  to  its  health  work  a  dental  clinic  for  the  families  of 
employes.  A  dental  surgeon  has  been  employed  to  care 
for  the  teeth  of  the  children  in  the  various  schools  main- 
tained by  the  company.  No  dental  work  is  done  without  a 
written  permission  from  the  parents,  and  it  is  interesting 
to  note  that  during  one  year  in  not  a  single  instance  was 
permission  refused.22 

At  some  plants  special  courses  in  practical  housekeeping 
are  arranged  by  the  company  for  the  benefit  of  the  wives 
and  children  of  employes.22  The  visiting  or  district  nurse 
is  usually  the  teacher  for  these  classes.  Some  companies 
provide  houses  or  special  rooms  and  equipment  for  the 
maintenance  of  this  work.  In  other  instances  visiting 
housekeepers  are  employed  who  go  into  the  house  and  teach 
cooking  and  housekeeping.  This  kind  of  service  is  partic- 
ularly valuable  where  many  foreigners  are  employed  who  do 
not  know  the  proper  way  to  prepare  many  kinds  of  cheap 
foods.  It  is  the  duty  of  the  visiting  housekeeper  to  assist 
in  reducing  the  cost  of  living  by  giving  instructions  in  appe- 
tizing ways  of  cooking  the  cheaper  articles  of  diet.  The 
Consolidated  Coal  Corporation  of  Virginia  employs  a  die- 
tetics teacher  who  goes  into  the  houses  of  the  employes. 

Recreation.  —  Provision  for  recreation  takes  the  form  of 
parks,  swimming  pools,  club  houses,  or  playgrounds.  At 
Terminal  City  we  find  provisions  for  bowling,  billiards, 
basket  ball,  baseball,  tennis,  and  outdoor  recreation  in  the 
summer  time.48  The  New  Jersey  Zinc  Company  at  Palmer- 
ton  provides  a  kindergarten  at  which  those  women  who 
work  and  who  have  no  one  with  whom  to  leave  their  chil- 
dren can  bring  the  little  ones  for  the  day's  stay.  There  is 
also  a  neighborhood  house  which  acts  as  a  club  for  the 
employes,  but  is  used  by  others  as  well.     It  was  patronized 


THE    EMPLOYER  AND   THE   COMMUNITY       289 

during  one  year  by  more  than  14,000  grown-ups  and  chil- 
dren.49 The  most  important  community  work  of  Hershey, 
the  noted  Pennsylvania  chocolate  town,  is  Hershey  Park, 
which  is  open  to  all.  In  this  recreational  area  are  included 
a  swimming  pool,  dancing  pavilion,  and  lawns  set  with  ap- 
pliances for  athletic  sports.51  The  Eastman  Kodak  Com- 
pany also  provides  "  Kodak  Park  "  for  the  use  of  all  citi- 
zens of  Rochester.  The  fact  that  the  employes  do  better 
work  when  they  know  an  interest  is  being  taken  in  their 
families  led  the  Endicott  Johnson  Company  to  build  a  2,000,- 
000-gallon  swimming  pool  which  is  reserved  for  the  use  of 
children  during  the  daytime.52  The  Ludlow  Manufacturing 
Company  has  built  a  club  house  in  which  there  are  a  gym- 
nasium, bowling  alleys,  swimming  pools,  and  reading  room, 
and  near  by  is  the  athletic  park  for  outdoor  sports  and  chil- 
dren's recreational  classes.48 

Out-of-door  recreation  is  emphasized  in  both  cotton  and 
mining  towns.  At  Saxon  Mills,  Spartanburg,  S.  C,  there  are 
volley  ball,  tennis,  basket  ball,  and  swimming  for  every  one. 
There  is  also  a  community  building  surrounded  by  a  play- 
ground.68 

The  fact  that  "  vigorous  childhood  leads  to  vigorous 
manhood"  has  led  the  various  subsidiaries  of  the  United 
States  Steel  Corporation  to  give  much  attention  to  play- 
grounds. The  first  playground  in  connection  with  the 
Steel  Industry  was  established  in  1910.  In  1914  there  wen1 
101  playgrounds  at  the  operations  of  the  Steel  Corporation. 
In  most  cases  they  arc  owned,  operated,  and  maintained 
by  one  of  the  subsidiary  companies.  In  a  few  eases  they 
have  been  turned  over  to  the  local  playground  association, 
the  company  still  contributing  to  the  maintenance.  These 
playgrounds  are  open  to  all  children  of  the  neighborhood. 
In  the  evenings  the  playgrounds  are  used  for  music,  mov- 
ing pictures,  and  other  entertainments  for  the  grown-ups. 
The  cost  of  a  playground  is  small  (between  si  is  and  $120 


290  THE    HUMAN   FACTOR   IN    INDUSTRY 

are  the  figures  given  by  the  Ellsworth  and  Cokeburg  Col- 
lieries for  1913)  and  the  results  far-reaching.  The  standards 
of  child  life  —  physical,  mental,  and  moral  —  are  raised  and 
the  results  are  reflected  in  more  healthful  living  conditions 
in  the  home.54 

The  recreational  activities  of  the  Colorado  Fuel  and 
Iron  Company  include  moving  picture  shows,  playgrounds, 
and  other  activities  planned  with  the  assistance  of  the 
Y.  M.  C.  A.  secretaries  and  committees  on  recreation  and 
education  created  by  the  industrial  representation  plan.21 

In  contrast  to  the  glowing  tales  of  playgrounds  for  the 
children  are  the  conditions  in  Homestead,  one  of  the  earliest 
steel  towns.  A  recent  article  states  :  "  Little  children  played 
on  the  sidewalk  flush  with  the  four-tracked  railroad,  to  get 
their  last  tire  before  tumbling  on  to  the  family  mattress." 
This  same  writer  says  of  the  works  of  the  National  Tube 
Company  near  Lorain,  Ohio :  "  The  street  car  picked  its 
way  through  an  alley  not  wide  enough  for  a  sidewalk,  in 
addition  ...  a  playground  for  the  children  who  darted  in 
and  out.  The  shacks  and  houses,  the  children's  homes, 
lined  the  street  so  close  that  the  steps  were  set  on  the  brick 
paving.  The  backyards  of  cinders  ran  down  to  the  rail- 
road, or  their  outhouses  met  outhouses  of  other  shacks 
which  faced  the  railroad."  Thus  we  have  two  instances 
of  steel  towns  in  which  the  employing  company  has  not 
assumed  the  responsibility  of  maintaining  a  healthy  commu- 
nity life,  and  on  the  other  hand  the  town  has  failed  because 
the  inhabitants  are  not  possessed  of  adequate  resources.55 

The  club  house  also  takes  an  important  part  in  community 
recreation  work  when  its  use  is  not  limited  to  the  employes 
of  the  company.  The  club  house  of  the  Oliver  Iron  Min- 
ing Company  is  open  at  all  times  to  members  and  their 
friends.  The  Boys'  Club  of  the  Lackawanna  Social  Center 
is  an  "  open  "  club.  Any  boy  in  the  village  is  welcome. 
The  social  center  of  this  company  also  provides  club  facilities 


THE   EMPLOYER   AXD   THE   COMMUNITY       291 

where  employes  and  non-employes  can  spend  their  leisure 
hours  profitably.  In  1907  a  club  house  was  built  at  Burham 
by  two  steel  companies,  with  the  assistance  of  individual 
subscriptions.  This  is  really  a  community  center  and  is 
managed  by  directors  composed  of  people  from  the  neighbor- 
hood. Another  example  of  a  community  club  house  is  that 
built  by  the  Cleveland  Cliffs  Iron  Company,  at  the  mining 
town  of  Gwinn.  The  membership  for  non-employes  is  six 
dollars  a  year,  while  employes  pay  three  dollars'  annual 
dues.  There  is  a  small  membership  fee  of  ten  cents  per 
month  for  boys  of  the  community,  who  have  the  privilege  of 
the  game  and  reading  room  and  swimming  pool  at  certain 
stated  times.56 

Education.  —  The  employing  company  in  a  corporation- 
owned  town  may  also  have  to  assist  in  educational  activ- 
ities. One  instance  of  this  is  that  of  Hershey,  where 
the  chocolate  factories  are  located.  The  country  schools 
of  this  district  were  united  and  placed  on  a  graded  basis. 
Mr.  Hershey  built  and  equipped  a  school  costing  820,000 
in  1914.  The  Hershey  public  library  is  also  available  to 
the  community.51 

Educational  work  is  emphasized  by  the  Colorado  Fuel 
and  Iron  Company.  There  are  no  "  company  "  schools, 
but  the  company  cooperates  with  the  school  board  to  secure 
the  best  advantages.  The  property  in  the  vicinity  of  its 
camps  is  usually  owned  by  the  company,  so  it  bears  most  of 
the  expense  of  maintaining  the  schools.  An  interesting  ex- 
periment has  been  tried  at  the  coal-mining  camp  at  Sopris, 
Colorado.  There  the  children  are  given  credit  for  instruct- 
ing their  parents  at  home.  Gradually  the  school  system  is 
being  extended  to  include  high  school  work.21 

Conclusion 

The  fact  that  industrial  efficiency  depends  so  much  upon 
the  healthy,  happy  life  of  the  employee  outside  of  working 


292  THE   HUMAN   FACTOR   IN   INDUSTRY 

hours  has  led  some  employers  to  take  an  interest  in  the 
house  the  employe  lives  in,  the  recreational,  educational, 
and  health  facilities  which  are  available  for  him  and  his 
family.  But  there  are  certain  important  principles  which 
every  employer  must  face  squarely.  What  the  employe  de- 
mands first  is  fair  wages.  Any  substitute  for  this  will  fail. 
What  the  employer  wants  is  efficient,  permanent  employes. 
If  the  living  conditions  in  a  community  are  such  that  the 
payment  of  fair  wages  alone  will  not  secure  decent  living 
conditions  for  his  employes,  economy  and  justice  make  him 
responsible  for  improving  these  conditions.  In  the  large 
city  an  employer  can  secure  decent  living  conditions  for  his 
workers  by  making  the  best  transportation  facilities  avail- 
able, having  an  information  service  in  regard  to  available 
accommodations  and  perhaps  assisting  in  forming  a  co- 
operative store.  His  responsibility  in  the  isolated  com- 
munity is  greater,  and  so  also  are  the  dangers  of  his  assum- 
ing that  responsibility.  Some  pitfalls  may  be  avoided  if 
the  method  of  selling  houses  is  such  that  the  worker  will 
not  lose  credit  for  payments  if  he  leaves  the  company ;  if 
leases  are  not  automatically  and  immediately  terminable 
in  case  the  employe  leaves  the  company  or  there  is  a  strike ; 
if  the  houses  provided  are  hygienic  and  comfortable,  and  if 
there  are  no  restrictions  which  impair  freedom,  such  as 
prohibiting  orderly  meetings  of  union  organizers.  The  em- 
ployer may  find  it  necessary  to  provide  educational,  recrea- 
tional, and  health  facilities  and  also  a  store,  but  if  wages 
are  sufficient  to  provide  the  necessary  funds,  and  interest  in 
community  is  aroused,  the  employer  may  soon  abandon 
his  direct  efforts,  let  the  people  decide  what  they  want  and 
give  them  an  opportunity  to  manage  the  thing  themselves. 
He  may  in  this  way  become  a  strong  force  for  the  improve- 
ment of  the  general  health  and  happiness  of  the  community 
without  facing  the  danger  either  of  paternalism  or  of  laissez- 
faire  policy. 


CHAPTER  XI 
INSURANCE,   SAVINGS,   AND   LOANS 

Contingencies  Which  Threaten  Each  Individual.  —  Sick- 
ness, accident,  death,  old  age,  and  invalidity  are  contingencies 
in  the  life  of  the  individual.  But  when  they  will  affect  any 
given  individual  is  uncertain.  A  person  is  sure  to  die,  but 
the  age  at  which  his  death  will  occur  cannot  be  predeter- 
mined. Almost  everybody  will  be  sick  at  some  time  or  the 
other,  but  again  the  uncertainty  of  the  time  or  the  frequency 
and  extent  of  illness  make  it  difficult  for  an  individual  to 
provide  out  of  savings  for  the  lost  wages  and  the  cost  of 
illness.  The  basis  of  all  insurance  is  to  spread  over  a  group 
of  persons  a  loss  that  may  affect  any  one  of  them,  and  is 
certain  to  affect  some  of  them  within  a  given  period. 

Shifting  Basis  of  Mutual  Help.  —  In  primitive  society 
the  problems  of  the  individual  were  those  of  the  group,  and 
responsibility  was  assumed  by  the  family  or  tribe  for  all 
contingencies.  With  the  growing  complexity  of  Bociety, 
the  basis  of  mutual  help  shifted  from  the  blood  tie  to  the 
guild,  to  the  trade  group,  or  economic  class.  Mutual  Asso- 
ciations and  Aid  Societies  were  formed  to  provide  for  the 
hazards  which  confronted  the  workingman  and  to  distribute 
his  losses  among  the  group. 

Societies  for  Mutual  Aid.  —  Societies  for  mutual  aid  are 
known  by  different  names  in  various  countries.  Great 
Britain  has  Friendly  Societies,  Trade  Union  Benefit  Socie- 
ties, and  Shop  Clubs;  France  has  her  Soci^tes  <le  Secours 
Mutuels ;  ( Jermany,  Local  Sick  Funds,  Establishment  Funds, 
and  Mutual  Aid  Funds;    in  the  United  States,  the  corre- 

293 


294  THE    HUMAN    FACTOR    IN    INDUSTRY 

sponding  organizations  are  the  Fraternal  Societies,  Estab- 
lishment Funds,  and  Trade  Union  Benefit  Schemes.1 

Insurance  Companies.  —  These  cooperative  efforts  have 
reached  only  a  portion  of  the  working  class.  In  addition, 
mutual  and  stock  insurance  companies  in  Europe  and  the 
United  States  supply  the  wage  earner  with  needed  protec- 
tion against  financial  embarrassment.  To  date,  these  have 
sought  especially  to  meet  the  contingency  of  death  and  old 
age,  but  they  are  rapidly  broadening  their  field  to  include 
sickness,  accident,  and  invalidity.  "  The  Prudential  "  of 
London  is  to-day  one  of  the  largest  carriers  of  sickness  in- 
surance in  England.  "  Industrial  Insurance,"  as  adminis- 
tered by  the  life  insurance  companies  in  the  United  States, 
differs  from  "Ordinary"  life  insurance  only  in  that  the  pre- 
mium is  paid  in  small  weekly  installments  and  that  the  pre- 
miums remain  constant  while  the  amount  of  insurance  varies 
with  the  age.  The  cost  of  this  type  of  insurance  is  necessarily 
higher  than  "  Ordinary  "  insurance  because  of  the  expense  of 
premium  collection  and  the  higher  mortality  rate  of  the  class 
of  people  taking  out  these  policies.  In  spite  of  this,  "  Indus- 
trial Insurance  "  has  been  used  extensively  by  the  wage-work- 
ing classes  to  provide  protection  for  the  whole  family,  and 
in  particular  for  women  and  children  who  are  excluded  from 
membership  in  industrial  mutual  benefit  schemes.  "  Group 
Insurance  "  is  another  method  by  which  the  insurance  com- 
pany reaches  the  industrial  classes.  It  consists  of  a  blanket 
policy  issued  to  an  employer,  covering  one  or  more  of  the 
risks  to  which  the  employes  of  his  establishment  are  subject. 
The  premiums  for  this  form  of  insurance  may  be  paid  by  the 
employer  alone  or  by  the  employer  and  employes  jointly. 
Because  premiums  are  collected  directly  from  the  employer 
in  bulk,  the  cost  of  Group  Insurance  is  proportionately  less. 

Legislation.  —  The  interest  of  society  in  the  problem  of 
mutual  aid  is  evidenced  by  the  passage  of  Social  Insurance 
Laws  by  European  governments,  which  make  for  the  protec- 


INSURANCE,  SAVINGS,  AND   LOANS  295 

tion  of  wage  earners.  In  the  United  States,  legislation  of 
this  type  has  dealt  so  far  only  with  accidents.  Since  1909 
Workmen's  Compensation  Laws  have  rapidly  extended  to 
thirty-eight  States,  the  Territories  of  Alaska  and  Hawaii,  the 
Island  Possessions  of  Porto  Rico  and  the  Philippine  Islands. 
A  Federal  Law  provides  for  half  a  million  employes.2 

Standards  by  Which  Insurance  Carriers  may  be  Judged. 
—  It  is  important  to  discuss  the  part  which  the  manage- 
ment of  industrial  plants  should  play,  both  now  and  in  the 
future,  in  developing  plans  for  the  protection  of  their  work- 
men against  the  hazards  of  industry.  These  questions  are 
now  being  considered  by  employers  because  they  appreciate 
that  the  employe  freed  from  dread  of  the  loss  of  earnings  is 
a  more  efficient  and  contented  worker,  and  because  the 
industrial  unit  has  been  found  convenient  for  the  adminis- 
tration of  plans  of  protection  against  such  losses.  Co- 
operation on  the  part  of  the  employer  in  providing  insurance 
need  not  savor  of  paternalism,  whether  he  pays  the  premium 
on  a  Group  Insurance  policy,  or  helps  the  employes  to  main- 
tain their  own  mutual  benefit  society.  Conditions  of  work 
and  mode  of  employment  are  frequently  factors  contribut- 
ing to  the  breakdown  of  the  human  machine.  When  the 
breakdown  comes  it  is  only  just  that  industry  should  take 
its  share  of  the  responsibility.3 

The  points  to  be  borne  in  mind  in  the  consideration  of 
methods  of  protection  or  insurance  are  as  follows  :  (1)  there 
must  be  as  wide  a  distribution  of  risks  as  possible ;  (2)  admin- 
istration should  be  by  experts;  (3)  the  benefits  mu-t  be  ade- 
quate ;  (4)  the  cost  of  adminisl  rat  ion  should  be  low  ;  (5)  the 
freedom  of  the  employe  to  choose  employment  where  he 
pleases  must  not  be  hampered  by  his  participation  in  any 
insurance  scheme. 


296  THE   HUMAN   FACTOR   IN   INDUSTRY 

Sickness  Insurance 

Cost  of  Illness  to  Industry.  —  The  frequency  with  which 
illness  occurs,  the  loss  of  time  and  the  financial  embarrass- 
ment which  it  causes,  and  the  devastation  it  produces  on  the 
nation  and  industry  by  lowering  power  of  resistance  and 
efficiency,  have  caused  the  development  of  methods  of  partial 
compensation  for  lost  wages.  Sickness  surveys  made  by 
the  Metropolitan  Life  Insurance  Company,  covering  600,000 
individuals,  show  that  an  average  of  2.02  per  cent  of  the  popu- 
lation studied  were  sick,  while  1.88  per  cent  were  unable  to 
work,  and  that  the  average  annual  loss  of  time  was  5.6  work- 
ing days.4  The  Social  Insurance  Commissions  of  California 
and  Connecticut  estimated  the  time  lost  annually  by  each 
wage  earner  through  illness  as  six  days,5  while  the  Ohio 
Commission  puts  the  average  at  nine  days.6 

Present  Extent  of  Sickness  Insurance.  —  It  is  difficult  to 
estimate  with  any  exactness  the  extent  of  sickness  insurance 
among  the  wage-working  population.  But  from  the  study 
published  in  1908  by  the  United  States  Department  of  Labor  7 
and  later  investigations  made  by  Sydenstricker  for  the  United 
States  Public  Health  Service,8  it  would  seem  that  the  number 
of  wage  earners  protected  is  small  and  that  the  amount  of 
protection  is  inadequate. 

Trade-Union  Funds.  —  Trade  unions  have  made  attempts 
through  voluntary  action  to  insure  their  members.  The 
majority  of  these  schemes  give  benefits  in  case  of  temporary 
disability.  This  usually  includes  disability  resulting  from 
sickness  and  accident.  The  Sydenstricker  study  indicates 
that  about  85  per  cent  of  the  national  and  international 
unions  had  sick  benefit  schemes  in  some  of  their  locals.  Of 
the  530  local  union  benefit  funds  included  in  the  Bureau  of 
Labor  Statistics  study,  308,  or  58  per  cent,  paid  sick  benefits. 
But  labor  unions  do  not  in  all  probability  cover  more  than 
30  per  cent  of  the  industrial  workers.     The  periods  for 


INSURANCE,  SAVINGS,  AND   LOANS  297 

which  benefits  are  paid  vary,  hut  about  70  per  cent  of  the 
temporary  disability  funds  pay  for  thirteen  weeks  or  less. 
The  amount  of  cash  benefit  is  from  one  dollar  to  fifteen 
dollars  per  week,  but  the  average  amount  paid  per  day  for 
temporary  disability,  according  to  available  information,  is 
about  eighty  cents.  Only  thirty-three  of  these  local  funds 
investigated  include  any  provision  for  permanent  disability. 

Fraternal  Societies.  —  The  fraternal  societies  have 
achieved  limited  success  in  the  field  of  sickness  insurance. 
In  1915  thirty  of  the  179  National  Fraternal  Societies  offered 
sickness  insurance.  The  sick  benefits  are  usually  So. 00  a 
week  for  a  period  varying  from  twelve  weeks  to  nine 
months. 

Employes'  Benefit  Associations.  —  An  effort  has  been  made 
by  Mr.  Sydenstricker  to  give  a  conservative  estimate  of 
the  number  of  manufacturing  and  mining  establishments 
having  mutual  benefit  funds  in  the  United  States.  He 
states  that  although  the  answers  to  his  questionnaire  indi- 
cate that  19  per  cent  have  such  funds,  a  more  correct  estimate 
is  probably  10-12  per  cent.  The  reason  for  this  lower  esti- 
mate is  that  probably  the  large  majority  of  those  not  replying 
to  the  questionnaire  had  no  such  funds. 

Of  the  339  funds  studied,  two  thirds  paid  benefits  for  thir- 
teen weeks  or  less.  This  is  a  situation  somewhat  similar  to 
that  found  by  the  Bureau  of  Labor  Statistics.  In  its  study  of 
420  funds,  55  per  cent  paid  benefits  for  thirteen  weeks  or  less. 
The  predominant  weekly  rate  for  temporary  disability  was 
five  or  six  dollars.  Only  about  12  per  cent  of  the  161  funds 
studied  by  the  Bureau  of  Labor  Statistics  pay  permanent 
disability  benefits. 

Basis  for  Employes'  Benefit  Association.  —  Perhaps  the 
most  thorough  study  of  Mutual  Benefit  Associations  was 
that  of  57!)  made  by  Mr.  \Y.  L.  Chandler  of  the  Dodge 
Manufacturing  Company.9  Prom  this  investigation  certain 
conclusions  were  reached  and  tried  out  in  the  Dodge  organ- 


298  THE   HUMAN   FACTOR   IN   INDUSTRY 

ization.     The  results  of  this  survey  answer  several  problems, 
as  follows : 

(1)  A  benefit  association  increases  the  efficiency  of  its  members. 
It  is  a  means  of  eliminating  some  of  the  economic  waste  due  to  ill- 
ness. 

(2)  To  be  effective,  an  association  must  be  sound  and  command 
the  confidence  of  the  employes.  The  rate  should  be  safe  so  that 
assessments  are  not  necessary.     Actuarial  guidance  is  necessary. 

(3)  It  is  better  to  make  the  system  so  attractive  that  all  will 
want  to  join  than  to  make  it  compulsory.  The  experience  of  the 
Dodge  Association  and  others  shows  that  a  consistent  and  enthusi- 
astic sales  effort  by  the  secretary  will  result  in  about  a  70  per  cent 
membership. 

(4)  The  association  should  be  managed  for  and  by  the  employes 
with  the  counsel  and  cooperation  of  the  management. 

(5)  The  employer  may  allow  the  officers  of  the  association  to 
transact  their  business  on  company  time,  but  the  members  should 
carry  the  balance  of  the  cost.  If  the  employer  assumes  part  of  the 
premium  it  may  seem  paternalistic.  The  Dodge  Manufacturing 
Company  allows  the  officers  to  transact  their  business  on  company 
time. 

(6)  The  question  of  retention  of  membership  in  an  association 
when  an  employe  leaves  or  is  laid  off  should  be  given  careful  con- 
sideration. Unless  the  member  remains  within  the  same  locality 
supervision  is  difficult.  The  Dodge  Association  has  solved  this 
difficulty  by  terminating  the  membership  of  any  employe  when  he 
leaves  the  employ  of  the  company,  except  in  case  a  member  is  tem- 
porarily laid  off. 

(7)  There  may  be  various  classes  of  members,  each  member 
electing  benefits  which  best  suit  his  needs.  The  total  benefit 
received  by  any  one  person  should  not  exceed  90  per  cent  of  his  wage. 
The  Dodge  experience  shows  that  an  effort  should  be  made  to  induce 
members  to  carry  at  least  50  or  60  per  cent  of  their  average  wage. 

Because  of  the  varying  conditions  it  would  be  an  impossi- 
bility to  set  down  hard  and  fast  rules  for  the  organization 
or  reorganization  of  an  Employes'  Benefit  Association,  but 
Mr.  Chandler's  general  principles,  based  on  wide  experience, 
cannot  but  be  helpful  to  any  one  attempting  to  establish 
a  new  or  increase  the  efficiency  of  an  existing  association. 


INSURANCE,  SAVINGS,  AND   LOANS  299 

Success  of  Joint  Management.  —  It  is  only  within  recent 
years  that  employers  have  begun  to  realize  that  by  lending 
their  cooperation  the  employes'  benefit  association  can  be 
made  a  much  more  effective  instrument  for  establishing  that 
necessary  confidence  and  good-will  between  employer  and 
employe  which  result  in  decreased  absenteeism  and  labor 
turnover. 

The  Bureau  of  Labor  Statistics  made  a  study  of  the  rela- 
tionship between  management  and  membership  and  found 
that  where  the  funds  were  managed  by  employes,  30  per 
cent  of  the  employes  were  members ;  where  managed  by 
employers  alone,  75  per  cent  of  the  employes  were  members ; 
and  where  managed  jointly,  66  per  cent  of  the  employes 
were  members.7  These  figures  point  to  apparently  better 
results  in  associations  managed  by  employers.  In  the  long 
run  the  objects  and  aims  of  Mutual  Association  may  be 
better  conserved  if  the  members  have  the  opportunity  and 
gain  the  experience  of  joint  management  or  management 
with  cooperation  of  the  employer. 

The  International  Harvester  Company's  Mutual  Benefit 
Association  is  managed  jointly  by  a  board  of  trustees, 
one  half  chosen  by  member  employes  and  one  half  named 
by  the  company.  The  company  contributes  $25,000  per 
year  if  50  per  cent  of  the  employes  are  members,  and 
$50,000  if  75  per  cent  arc  members.  Since  the  found- 
ing of  the  association  in  1908,  the  larger  sum  has  been 
contributed  every  year  and  there  has  never  been  any  deficit 
in  the  fund.     Membership  is  voluntary.10 

The  membership  in  the  association  of  the  Cadillac  Motor 
Company  is  voluntary.  The  company  pays  all  expenses  of 
administration.  The  association  is  in  charge  of  the  super- 
intendent of  the  welfare  department,  with  an  advisory  com- 
mittee, one  half  of  which  is  selected  by  the  management  and 
one  half  elected  annually  from  among  the  employes.  The 
judgment  of  this  committee  is  final  in  all  appeals.11 


300  THE   HUMAN   FACTOR   IN   INDUSTRY 

The  Huyck  and  Sons  Employes'  Benefit  Association  was 
established  in  1911  with  about  98  per  cent  of  the  employes 
as  members.  It  is  operated  by  two  committees,  one  repre- 
senting the  men  and  one  the  women.  Each  committee  is 
made  up  of  members  representing  the  employes  and  the 
company.  The  company  pays  all  the  expenses  of  accident 
compensation  and  pensions,  and  the  employes  contribute 
1  per  cent  of  their  wages  toward  the  cost  of  sickness 
insurance.12 

Employers'  Judgment  of  Mutual  Benefit  Associations. 
—  Many  corporations  have  already  passed  favorable  judg- 
ment upon  the  results  of  an  Employes'  Benefit  Association. 
The  Cadillac  Motor  Car  Company,  the  International 
Harvester  Company,  F.  C.  Huyck  and  Sons,  and  numerous 
others  give  the  results  of  the  Employes'  Benefit  Association 
in  rather  definite  language  as  follows :  It  has  been  successful 
in  preventing  malingering,  it  brings  the  employe  back  to 
work  with  a  lighter  load  of  debt,  it  breeds  the  spirit  of  man 
and  company  cooperation,  encourages  contentment  by 
teaching  self-reliance,  and  it  is  worth  more  to  the  company 
than  it  costs. 

Group  Insurance.  —  Insurance  companies  are  develop- 
ing "  Group  Insurance  "  to  provide  both  life  and  sickness 
insurance  to  meet  the  problem  of  insolvency  which  faces  the 
detached  mutual  benefit  association.  The  employer  usually 
pays  the  life  insurance  premium,  but  a  contributory  plan 
has  proved  successful  for  sickness  insurance.  In  every 
establishment  where  this  plan  has  been  followed,  over  80 
per  cent  of  the  total  number  of  employes  have  voluntarily 
enrolled.  It  is  not  necessary  that  every  employe  be  en- 
rolled, but  if  the  plan  is  attractive  the  per  cent  joining  will 
ordinarily  be  high  enough  to  make  insurance  feasible.13 

Group  sickness  insurance  is  of  such  recent  origin  that  it  is 
difficult  to  find  any  statement  of  opinion  as  to  its  results  ex- 
cept in  a  very  general  way.     Mr.  Feiss  of  the  Clothcraft  Shops 


INSURANCE,  SAVINGS,  AND   LOANS  301 

in  Cleveland,  after  an  investigation  of  almost  every  known 
scheme  of  insurance,  concluded  that  schemes  conducted  with- 
out the  aid  of  experts  were  apt  to  fail  in  their  purpose.  The 
Clothcraft  Shops  placed  all  of  their  insurance,  including 
accident  and  sickness,  old  age,  and  life  insurance,  in  the 
hands  of  an  insurance  company,  with  a  department  within 
the  plant  organized  for  their  supervision  and  administration.14 

Standards  of  Evaluation  for  Various  Methods  of  Sickness 
Insurance.  —  Each  type  of  insurance  should  be  evaluated 
according  to  the  opportunity  it  offers  for  the  distribution 
of  risk,  economical  administration,  supervision  by  experts, 
the  degree  to  which  it  permits  freedom  to  the  insured,  and 
the  adequacy  of  the  benefits  provided. 

Distribution  of  Risk.  —  The  trade  union  may  be  able  to 
manage  simple  forms  of  insurance  which  do  not  demand 
heavy  reserves  and  large  investment.  Although  there  is 
not  very  wide  distribution  of  risk  in  a  small  local  union  the 
members  are  exposed  to  similar  hazards.  The  habits  of 
members  are  known  and  malingering  is  more  readily  pre- 
vented. The  local  fraternal  society,  which  is  the  usual 
carrier  of  sickness  benefits  in  fraternal  orders,  also  lacks  wide 
distribution  of  risk.  "  The  strength  of  the  fraternal  associ- 
ation lies  in  a  certain  sympathy,  even  sentimentality,  which 
binds  the  members  together  in  strong  bonds,  but  which  ob- 
scures the  judgment  of  hard  mathematical  facts  and  is  incon- 
sistent with  the  necessary  cold-blooded  calculation  and  busi- 
ness direction  which  assures  (lie  wise  management  of  funds."16 
The  statement  of  many  employers  indicates  that  employes' 
mutual  benefit  schemes  organized  in  the  industry  with 
the  cooperation  of  the  employer  have  the  advantage  of  econ- 
omy and  the  easy  prevention  of  malingering,  and  should  have 
no  difficulty  in  providing  temporary  disability  benefits  in 
case  of  sickness  and  accidents.  Hut  here  again  the  dis- 
tribution of  risk  may  not  be  sufficiently  wide.  An  epidemic, 
before  a  reserve  lias  been  developed,  is  certain  to  result  in 


302  THE   HUMAN   FACTOR   IN   INDUSTRY 

the  bankruptcy  of  an  employes'  benefit  association,  even  if 
the  premium  is  ordinarily  adequate.  It  is  possible  that 
these  associations  may  serve  as  a  nucleus  for  the  provision 
of  more  extended  benefits  under  the  group  plan,  whereby 
the  benefit  association  would  be  reinsured  by  a  regular  in- 
surance company.  The  cost  would  be  low,  but  rates 
would  be  determined  and  surplus  invested  by  experts. 
Group  insurance  is  the  only  type  of  insurance  in  which 
solvency  is  secured  by  wide  distribution  of  risk  and  expert 
administration. 

Benefits.  —  Neither  the  trade  union,  fraternal  society,  nor 
establishment  fund  provides  for  sufficient  benefits.  Because 
of  the  danger  of  malingering,  the  payment  of  full  salary  has 
not  been  found  feasible.  The  Metropolitan  Life  Insurance 
Company,  however,  has  found  it  possible  to  insure  its  em- 
ployes, under  a  group  plan,  for  a  benefit  equivalent  to  two 
thirds  of  the  weekly  wage  for  twenty-six  weeks,  with  a  re- 
duced benefit  continuing  to  age  65. 16 

Restriction  of  Liberty.  —  No  form  of  insurance  will  meet 
with  success  and  accomplish  results  which  restricts  the 
liberty  of  the  employes  or  savors  of  paternalism.  The 
Employes'  Benefit  Association  organized  properly,  with  the 
cooperation  of  the  employer  but  controlled  and  supported 
by  the  employes,  seems  least  likely  to  restrict  liberty.  The 
fear  that  the  system  of  insurance  may  be  used  in  labor  dis- 
putes as  a  weapon  against  strikes  is  a  real  one  that  must  be 
faced.  If  this  difficulty  is  met,  employers  will  ordinarily  be 
glad  to  contribute  to  a  voluntary  system  of  sickness  in- 
surance which  they  believe  to  be  actuarially  sound.  The 
benefit  association,  if  protected  by  reinsurance,  is  safe  as 
well  as  democratic. 

Province  of  Sickness  Insurance  in  United  States.  —  In 
the  United  States  sickness  insurance  has  accompanied  the 
more  important  and  widespread  campaign  for  the  improve- 
ment of  health  conditions.     The  province  of  insurance  is 


INSURANCE,  SAVINGS,  AND  LOANS  303 

not  to  prevent  sickness,  but  so  to  distribute  the  loss  conse- 
quent upon  illness  that  a  substitute  is  provided  for  wages 
during  the  period  of  disability.  "  It  is  thus  simply  the  hand- 
maid of  a  larger  vision  of  society  which  sees  the  possibility  of 
dealing  with  social  ills,  not  by  giving  compensation  for  their 
effects,  but  by  eradicating  their  causes."  17 

Life  Insurance 

Life  Insurance  Inadequate.  —  The  death  of  the  bread- 
winner invariably  causes  economic  loss  to  the  family,  espe- 
cially in  the  case  of  premature  death.  Deaths  under  the 
age  of  forty-five  constitute  nearly  50  per  cent  of  all  deaths 
in  the  professional  classes,  60  per  cent  in  personal  service, 
55  per  cent  in  manufacturing  and  mechanical  industries,  and 
68  per  cent  among  laboring  and  servant  classes.1  The  work- 
ing class  is  largely  unable  to  provide  for  other  than  present- 
day  needs  unless  that  provision  is  cheap,  and  if  one  adds 
to  this  the  fact  that  the  motive  for  taking  out  life  insurance 
is  an  unselfish  one,  it  becomes  evident  that  the  vast  majority 
of  the  population  have  little  or  no  protection  against  the 
distress  which  commonly  follows  the  death  of  the  wage 
earner.  That  some  form  of  life  insurance  is  needed  is 
abundantly  testified  to  by  one  large  automobile  company 
carrying  group  insurance.  This  company  kept  close  record 
of  the  conditions  in  the  homes  of  its  employes.  Out  of  the 
first  fifty  claims  that  were  paid,  it  was  reported  that  there 
had  been  only  one  case  in  which  the  claim  money  was  not 
urgently  needed  to  prevent  immediate  distress.  Another 
large  company  studied  the  need  for  the  claim  money  in  over 
one  hundred  homes,  with  practically  the  same  result.18 

Present  Provisions.  -There  have  been  various  attempts 
made  to  offer  the  worker  a  method  of  protecting  his  de- 
pendents. Insurance  companies  offer  ordinary  life  and 
industrial  policies.     Ordinary  life  insurance  is  usually  issued 


304  THE   HUMAN   FACTOR   IN    INDUSTRY 

in  sums  of  $1000,  or  multiples  thereof,  with  premiums  payable 
annually,  semi-annually,  or  quarterly.  In  1918  approxi- 
mately 10  per  cent  of  the  population  in  the  United  States,  or 
10,000,000  persons,  held  ordinary  life-insurance  policies 
amounting  to  about  $20,000,000,000.19  But  although  this 
form  of  protection  is  popular  among  the  middle  classes  the 
vast  majority  of  wage  earners  are  unable  to  save  the  required 
amount  for  the  premium.  In  order  to  make  life  insurance 
available  for  a  larger  part  of  the  population,  industrial 
insurance  has  been  developed  which  provides  protection  for 
every  member  of  the  family  from  age  1  upwards.  The 
number  of  industrial  policies  issued  by  insurance  companies 
is  large,  about  41,610,168  of  these  policies  being  in  force 
in  1918.19  Mutual  associations,  trade  unions,  and  establish- 
ment benefit  societies  have  also  attempted  to  provide  death 
or  funeral  benefits.  The  fraternal  societies  usually  issue 
life  insurance.  The  expenses  of  administration  are  com- 
paratively low. 

Employes'  Benefit  Associations.  —  The  average  insurance 
carried  per  certificate  by  Fraternal  Societies  is  nearly  $1000. 
The  policy-holders  are  in  part  tradesmen  and  those  engaged 
in  mercantile  rather  than  in  industrial  pursuits.20  Ninety 
per  cent  of  the  establishment  funds  included  in  the  United 
States  Department  of  Labor  study  pay  death  benefits,  the 
predominant  amount  being  $50  and  $100.7 

Group  Life  Insurance.  —  Group  insurance  originated  in 
the  field  of  Life  Insurance  because  of  the  need  for  more 
effective  and  more  economical  means  of  safeguarding  the 
family  of  the  wage  worker.  There  is  reason  to  believe  that 
group  insurance,  with  its  financial  soundness  and  manage- 
ment by  experts,  will  be  adopted  as  the  standard  method 
of  providing  the  wage  earner  with  protection.  It  is  issued 
not  only  to  cover  death  but  may  include  also  sick  and  acci- 
dent benefits.  Under  the  plan,  employes  of  one  employer 
may  have  their  lives  insured  for  amounts  of  not  less  than 


INSURANCE,  SAVINGS,  AND   LOANS  305 

$500,  nor  more  than  $3000.  In  the  large  majority  of  States 
a  medical  examination  is  not  required  where  the  group  in- 
cludes more  than  fifty  individual  lives.  A  blanket  policy 
is  issued  to  the  employer,  and  certificates  of  insurance  are 
furnished  for  each  employe  covered.  Group  insurance  is 
generally  written  on  the  low  cost  One  Year  Renewable  Term 
plan ;  the  premium  usually  paid  by  the  employer  approxi- 
mates about  1  per  cent  of  the  total  amount  of  insurance 
provided.  The  amount  of  life  insurance  awarded  each  em- 
ploye may  be  graduated  on  the  basis  of  length  of  service, 
salary,  or  class  of  employment ;  thus  representing  both  a 
reward  for  past  services  and  an  incentive  for  future  services. 
Another  method  is  to  give  each  employe  a  uniform  fixed 
amount  of  insurance. 

This  form  of  insurance  was  inaugurated  in  1912  by  a  com- 
pany which  issued  a  $7,000,000  policy  on  the  lives  of  the  em- 
ployes of  the  Montgomery  Ward  Corporation  of  Chicago. 
In  1920  all  records  were  broken  when  over  $50,000,000 
insurance  was  issued  on  the  lives  of  70,000  employes  of  the 
General  Electric  Company. 

Evaluation  of  Various  Forms  of  Life  Insurance.  Trade 
Union  and  Establishment  Funds.  —  Neither  the  efforts  of 
the  establishment  funds  nor  of  the  trade  unions  can  be  digni- 
fied by  the  term  life  insurance.  The  more  important  criti- 
cisms of  these  efforts  are  that  the  benefits  are  so  small  that 
it  is  not  life  insurance  at  all  and  that  most  of  the  funds  are 
not  actuarially  sound.  The  danger  that  these  funds  will 
fail  is  lessened  if  there  is  a  continual  ent  ranee  of  new  members, 
but  experience  has  shown  that  this  is  difficult  to  obtain.  The 
consequent  cost  to  the  persistent  members  becomes  practi- 
cally prohibitive1.  The  more  serious  criticism  is  perhaps  thai 
the  economic  problem  of  death  is  not  met.  One  of  the  ex- 
ceptions to  this  is  the  Internationa]  Harvester  Compaj 
benefit  scheme,  which  provides  a  substantial  death  benefit  of 
two  years'  average  wages,  but  not  more  than  $3000. 


306  THE    HUMAN    FACTOR    IN    INDUSTRY 

Fraternal  Insurance.  —  Although  there  are  no  figures, 
the  general  opinion  is  that  fraternal  societies  do  not  provide 
life  insurance  for  those  most  needing  it,  the  low  paid  and  un- 
skilled. This  form  of  insurance  is  often  actuarially  un- 
sound. 

Group  Life  Insurance.  Costs  and  Results  of  Group  Life 
Insurance.  —  Group  life  insurance  is  the  only  system  under 
which  the  wage  worker's  family  is  adequately  protected 
through  the  industry  by  an  organization  in  which  the  basic 
principles  of  insurance  are  followed.  It  has  developed 
chiefly  as  an  employers'  proposition  and  is  usually  furnished 
on  a  gratuitous  basis.  The  employe's  motive  for  taking 
out  life  insurance  is  an  unselfish  one.  Because  of  this  fact 
and  the  expense  involved,  this  form  of  protection  does  not 
lend  itself  so  well  to  the  development  of  a  contributory  plan. 
Where  it  is  combined  with  a  contributory  sickness  policy 
any  possible  tendency  to  paternalism  is  overcome  and  a  real 
provision  for  the  dependents  of  the  wage  earner  is  made. 
This  is  the  form  of  insurance  which  the  Metropolitan  Life 
Insurance  Company  offers  to  its  home-office  employes.  The 
life  of  every  employe  whose  salary  is  less  than  $5000  a  year, 
who  accepte  the  offer  of  the  group  disability  policy  towards 
which  the  company  pays  a  percentage  of  the  premium  vary- 
ing according  to  the  years  of  service  of  the  employe,  is  in- 
sured for  an  amount  equal  to  one  year's  salary  up  to  $2500, 
the  company  paying  the  full  premium.  There  is  an  arrange- 
ment by  which  an  employe  leaving  the  service  of  the  com- 
pany can  secure  insurance  without  medical  examination. 
The  offer  to  the  field  force  is  similar,  but  the  maximum  of  the 
insurance  is  in  this  case  $2000. 16 

Experience  has  demonstrated  that  an  employer's  return 
on  this  group  life  insurance  investment  will  vary  in  pro- 
portion to  the  extent  to  which  his  employes  are  brought  to 
understand  group  life  insurance  and  appreciate  its  benefits. 
The  best  results  cannot  be  secured  if  the  group  life  transac- 


INSURANCE,  SAVINGS,  AND   LOANS  307 

tion  is  limited  to  the  issuance  of  the  policy  and  certificates, 
the  collection  of  premiums,  the  payment  of  death  claims, 
and  satisfactory  handling  of  the  limited  clerical  work  in- 
volved. To  insure  the  employer  a  satisfactory  return  on  his 
investment,  it  is  necessary  that  the  group  life  idea  be 
"  sold  "  to  his  employes.  At  least  one  company  has  created 
an  organization  which  undertakes  to  reach  not  only  the  em- 
ployes, but  systematically  and  regularly  to  carry  back  into 
their  homes  and  to  their  families,  an  appreciation  of  the  em- 
ployer's adoption  of  group  life  insurance. 

The  increasing  popularity  of  this  insurance  is  perhaps  the 
best  indication  of  the  returns  that  employers  are  receiving 
from  such  an  expenditure  of  one  or  two  per  cent  of  their  pay 
roll. 

The  following  comments  by  employers  are  of  interest : 
"  We  think  the  benefits  derived  from  the  proposition  warrant 
the  expenditure  and  are  very  glad  that  we  made  the  arrange- 
ment, both  from  a  humanitarian  standpoint  and  from  the 
fact  that  it  increased  the  satisfactory  relations  between  the 
men  and  the  company."  21  "It  is  the  best  thing  I  have  ever 
had  anything  to  do  with  in  my  business  experience  in  dealing 
with  employes.  If  it  cost  twice  what  it  does  I  would  not 
hesitate  to  keep  it."21 

Accident  Compensation 

Some  Accidents  Inevitable.  —  The  experience  of  many 
years  indicates  that  after  all  possible  safety  devices  have 
been  installed,  a  certain  number  of  accidents  arc  inevitable.22 

Basic  Principle  for  Industrial  Accident  Insurance.  — 
Almost  all  countries  agree  thai  the  entire  cost  of  compensa- 
tion for  industrial  accidents  should  fall  upon  the  employer. 
The  conception  of  "  trade  risk  "  underlies  the  development 
of  this  doctrine  as  opposed  to  the  old  theory  based  on  "  the 
fellow-servant  rule,"  "  the  assumption  of  risk  "  and  "  con- 


308  THE    HUMAN    FACTOR    IN    INDUSTRY 

tributory  negligence."  The  principle  of  "  trade  risk  "  is 
based  on  the  fact  that  many  accidents  occur  through  the 
fault  of  no  one,  but  simply  as  the  result  of  certain  industrial 
processes,  and  that  because  of  this,  industry  and  not  the  em- 
ploye should  bear  the  burden.1 

Development  of  Compensation  Principle  in  the  United 
States.  —  The  transferring  of  the  financial  responsibility 
from  the  employe  to  the  employer  is  the  compensation  prin- 
ciple. To  provide  compensation  is  the  duty  of  accident 
insurance.  Since  1909  the  Workmen's  Compensation  move- 
ment has  followed  the  example  set  by  Europe.  At  the  pres- 
ent time  Workmen's  Compensation  laws  are  in  force  in 
most  of  our  States.  The  English  system  in  which  the  em- 
ployer is  allowed  to  select  the  agency  through  which  he  will 
insure  has  been  followed  in  this  country  in  preference  to  the 
German  system  of  compulsory  insurance  in  mutual  societies. 
In  thirty-one  States  the  employer  is  given  option  as  to  the 
method  of  insuring  his  risk,  and  in  twenty-nine  States  self- 
insurance  is  permitted.6 

Insurance  Carrier.  —  As  the  financial  responsibility  of  em- 
ployers for  industrial  accidents  has  become  practically  a 
universal  principle,  the  method  of  insurance  is  important  to 
the  workingman  only  in  so  far  as  solvency  and  certainty  of 
payment  are  guaranteed.  It  is  a  problem  primarily  for  the 
employer,  who  will  select  the  carrier  insuring  economy  and 
efficiency.  There  is  such  a  lack  of  uniformity  of  opinion 
even  within  a  given  State  that  it  seems  impossible  to  esti- 
mate the  value  of  the  various  schemes.  Self-insurance 
has  been  recommended  as  a  means  to  force  interest  in 
"  Safety  First."  But  this  form  of  insurance  is  probably 
the  least  sound,  financially,  because  of  the  long  period  over 
which  payments  must  be  made  and  because  a  very  serious 
accident  may  make  it  difficult  to  meet  obligations.  The 
installation  of  safety  devices  probably  accomplishes  the 
same  result  as  self-insurance,  according  to  the  experience 


INSURANCE,   SAVINGS,   AND    LOANS  309 

of  the  Portland  Cement  Company  of  California.  The 
hazard  in  connection  with  the  manufacture  of  cement  pre- 
sumably was  such  as  to  warrant  the  Board  of  Insurance  Under- 
writers to  agree  upon  a  rate  of  5.7  per  cent  of  the  pay  roll  as  a 
premium  for  a  policy  covering  the  risks,  in  conformity  to  pro- 
visions of  the  Workmen's  Compensation  Act.  This  would 
have  amounted  to  $2736.00  a  month.  As  a  result  of  the 
installation  of  safety  appliances  and  intensive  educational 
campaigns  and  the  selection  of  risks  through  medical  examina- 
tions of  those  seeking  employment,  S709.96  was  paid  in 
insurance  premiums  for  ten  months  and  twenty-five  days.23 
Standards  for  Insurance  Carrier.  —  All  forms  of  insurance 
must  be  judged  upon  the  basis  of  security,  cost,  and  set 
Self-insurance  is  really  non-insurance,  since  there  is  no  set 
reserve  fund.  Mutual  insurance  carriers  will  probably 
survive  in  the  field  of  accident  insurance,  but  the  effect  of 
compensation  thus  far  indicates  a  gradual  drift  in  the  direc- 
tion of  the  strongest  and  most  efficiently  managed  stock 
and  mutual  companies.  To  date,  the  monopolistic  State 
funds,  with  few  exceptions,  have  not  succeeded  in  materially 
cutting  the  cost  of  insurance,  but  have  in  competition  with 
private  companies  been  very  helpful.  It  is  likely  that  the 
mutual  association  and  the  State  fund  will  be  allowed  to  com- 
pete. Whatever  may  be  the  ultimate  development,  it  is 
reasonable  to  expect  that  indust  ry  will  insist  upon  the  greatest 
security  and  the  best  service  at  the  minimum  cost  to  itself.24 

Old  Age  Insurance  or  Pensions 

Extent  of  Old  Age  Dependency.  —  Old  age  is  inevitable 
and  not  an  emergency,  but  the  fact  remains  that  there  is  a 
dependent  population  <>5  years  of  age  and  over,  who  either 
because  of  low  wages,  misfortune  of  one  sort  or  another,  or 
individual  shortcomings,  have  been  unable  to  provide  for 
the  latter  years  of  their  lives.     Approximately  1,250,000  of 


310  THE    HUMAN   FACTOR   IN    INDUSTRY 

the  people  of  the  United  States  above  65  years  of  age  are 
dependent  upon  public  or  private  charity  to  the  amount  of 
about  $250,000,000  annually.  One  person  in  18  of  our 
wage  earners  reaches  the  age  of  65  in  want.  In  the  words 
of  Lee  Welling  Squier,  "  Hundreds  of  thousands  of  working 
people  are  already  across  the  border  into  helpless  and  hope- 
less superannuation,  tens  and  hundreds  of  thousands  more  are 
now  pressing  the  border  line,  and  the  great  mass  of  American 
working  people  are  looking  dawn  the  vista  of  the  years  to 
possible  dependence  upon  charity  during  their  last  few  years 
on  earth ;  with  millions  of  money  being  spent  annually  for 
the  relief  of  this  condition  and  very  little  for  its  prevention. 
Certainly  the  old  age  dependency  problem  is  worthy  of  the 
most  serious  consideration  and  determined  action."  25 

Causes  of  Old  Age  Dependency.  —  Professor  Devine  and 
other  authorities  attribute  the  largest  part  of  old  age  depend- 
ency to  misfortune.  A.  G.  Warner  places  this  at  72  per  cent 
while  the  Massachusetts  Commission  on  Old  Age  Pensions, 
Annuities  and  Insurance  reports  that  60.1  per  cent  of  the  old 
age  dependency  is  due  to  extra  expenses  on  account  of  sick- 
ness and  emergencies,  25.4  per  cent  is  due  to  business  failures 
and  bad  investments,  3.2  per  cent  due  to  fire,  leaving  only 
11.3  per  cent  of  pauperism  caused  by  intemperance,  extrava- 
gance and  fraud.25 

"  The  doctrine  of  thrift  ...  is  usually  received  by  the 
workingman  with  scant  courtesy.  He  admits  its  desirability 
and  longs  for  the  opportunity  to  accept  it,  but  in  his  present 
condition  it  is  beyond  him."  25  The  ordinary  risks  in  living, 
the  inequalities  in  heritage  and  opportunity  among  men, 
and  the  absence  of  an  adequate  minimum  wage  make  it 
difficult  to  provide  for  old  age.  No  matter  how  much  is 
done  to  prevent  premature  superannuation  by  more  adequate 
provision  for  the  health  of  wage  earners  by  vocational  guid- 
ance and  by  securing  special  work  for  old  men,  the  problem 
of  superannuation  wall  still  remain.     There  will  still  be  the 


INSURANCE,   SAVINGS,  AND   LOANS  311 

man  who  has  been  prematurely  superannuated  by  excessive 
physical  strain,  sickness  or  accident,  and  there  will  always  be 
the  man  who  is  unable  to  work  because  he  is  too  old. 

Methods  of  Providing  Old  Age  Insurance.  —  The  prin- 
ciple of  insurance  is  applicable  to  the  contingency  of  old 
age  in  the  same  way  as  to  the  various  other  contingencies 
to  which  it  is  applied.  The  difficulties  of  provision  for  old 
age  and  the  uncertainty  of  attaining  it  make  it  impracti- 
cable for  the  individual  to  carry  his  own  risk.  Various 
methods  of  applying  the  insurance  principle  to  the  hazards 
of  superannuation  have  been  developed.  One  of  four 
methods  may  be  chosen. 

(1)  Voluntary  annuity  system. 

(2)  Pension  paid  by  mutual  association  or  industry. 

(3)  Compulsory  contributory  old  age  insurance  system. 

(4)  Service  pensions  paid  through  taxation. 

Voluntary  Annuities.  —  Annuities  are  sold  by  insurance 
companies  as  a  business  proposition  in  the  form  of  deferred 
annuities,  ordinary  twenty-year  endowment  policies,  in- 
dustrial twenty-year  endowment  policies,  and  various  other 
schemes  which  cover  the  joint  contingencies  of  death  and 
old  age.  Notwithstanding  the  efforts  of  the  insurance 
companies  to  popularize  this  method  of  providing  for  old 
age,  very  few  of  the  working  class  are  taking  advantage  of 
the  opportunities  offered.  The  reason  for  this  is  that  the 
returns  are  too  small  and  too  remote  to  stimulate  the  in- 
dividual to  the  necessary  self-denial  and  self-sacrifice.  The 
insurance  companies  have  devised  a  plan  of  extending  group 
insurance  to  cover  old  age,  by  making  life  policies  payable 
in  annuities  beginning  at  age  60  or  65.  If  policies  can  be 
issued  to  groups  of  at  least  one  hundred  people  the  benefit 
for  the  same  premium  ran  be  increased  30  per  cent. 

In  Massachusetts  the  Savings  Bank  Insurance  Act  of 
1907  is  an  attempt  to  furnish  old  age  annuities  to  wage 


312  THE    HUMAN    FACTOR    IN    INDUSTRY 

workers  at  the  lowest  possible  cost.  Wisconsin  is  the  only 
other  State  providing  for  the  sale  of  insurance  by  the  State. 
This  law  was  passed  in  1911.  Neither  in  Massachusetts 
nor  in  Wisconsin  have  any  considerable  number  of  people 
availed  themselves  of  the  State  insurance  schemes. 

The  failure  of  the  numerous  attempts  to  combine  old  age 
pensions  with  life  insurance  proves  that  people  do  not  volun- 
tarily purchase  annuities.  England  has  had  the  same  experi- 
ence. After  40  years  only  a  negligible  number  of  persons  an- 
nually purchase  annuities  under  the  post-office  plan,  but  even 
though  some  better  plan  be  worked  out,  there  should  always 
be  a  plan  for  the  voluntary  purchase  of  annuities  for  those 
who  wish  to  make  such  provision. 

Mutual  Associations.  —  Just  as  mutual  associations  have 
made  efforts  to  meet  the  other  contingencies  which  come 
into  a  wage  earner's  life,  so  have  they  attempted  to  make 
some  provision  for  old  age.  Up  to  1912  among  literally  thou- 
sands of  labor  unions,  —  national,  international,  and  local 
—  only  13  had  even  attempted  any  provision  for  the  relief 
of  their  aged  members.  This  statement,  based  upon  the 
twenty-third  annual  report  of  the  Commissioner  of  Labor 
for  1908  on  "  Workmen's  Insurance  and  Benefit  Funds  in 
the  United  States,"  shows  how  inadequately  labor  unions 
are  coping  with  the  problem  of  old  age.  Moreover,  such 
provisions  as  are  made  are  without  regard  to  the  requirements 
of  actuarial  science.25 

Fraternal  Insurance.  —  Of  the  182  fraternal  benefit 
societies  of  a  general  or  national  character  in  the  United 
States  there  are  42  which  promise  old  age  benefits.  The 
provision  is  usually  in  the  form  of  annuities  beginning  at  the 
age  of  70,  which  is  after  old  age  has  already  set  in.  These 
societies  are  also  often  actuarially  unsound,  the  premiums 
being  inadequate  even  for  death  benefits.  It  may  thus  be 
concluded  that  fraternal  societies  have  not  done  much  to 
relieve  old  age  dependency. 


INSURANCE,  SAVINGS,  AND   LOANS  313 

Employes'  Benefit  Association.  —  Plans  for  meeting  the 
problem  of  superannuation  from  within  industry  nearly 
always  provide  for  out-and-out  service  pensions,  with  no 
contribution  from  the  employe.  Among  461  Employes' 
Benefit  Associations  only  5  provided  superannuation  bene- 
fits. Of  these  3  are  pension  funds  maintained  entirely  by 
the  establishment  and  2  are  managed  and  supported  jointly.7 

Service  Pensions  Preferred.  —  There  are  many  reasons 
why  employers  as  well  as  employes  prefer  straight  service 
pensions  for  wage  earners  instead  of  pension  funds  with 
contributions  by  employes.  The  impermanence  of  the 
wage  earner's  employment  and  the  strenuous  objection  of 
the  workingman  make  any  contributory  scheme  inadvis- 
able. Any  deductions  from  wages  restrict  the  liberty  of 
the  employe.  He  must  submit  to  the  will  of  his  employer 
or  lose  his  contributions  to  the  pension  fund.  Another 
objection  of  the  wage  earner  is  that  the  deduction  reduces  his 
wages  and  his  standard  of  living,  and  he  denounces  the  sys- 
tem as  un-American.  This  feeling  may  be  the  result  of  an 
individualistic  philosophy,  but  whatever  the  reason  it  pre- 
vails and  must  be  recognized. 

Extent  of  Employer's  Service  Pensions.  —  Of  all  the 
great  industrial  employments  none  wears  men  out  more 
quickly  nor  subjects  them  to  greater  hazard  than  transporta- 
tion. In  this  and  a  few  other  industries,  such  as  navigation 
and  mining,  where  hazard  is  great  and  strenuous  work  makes 
premature  old  age  a  common  occurrence,  we  find  a  few 
pension  schemes.  A  survey  of  transportation  companies 
in  the  United  States  by  Lee  A.  Squier,  published  in  1912, 
shows  that  only  a  few  more  than  a  score  of  such  companies 
have  adopted  any  plan  of  compensation  for  their  old  and 
worn-out  employes.  Mr.  Squier  extended  his  investigation 
to  over  a  thousand  of  the  important  industrial  corporations 
of  this  country,  only  about  thirty  of  which  reported  any 
existing  scheme  of   relief   for  the  worn-out    worker.-5      A 


314  THE   HUMAN   FACTOR   IN   INDUSTRY 

study  made  by  the  National  Civic  Federation  under  the  di- 
rection of  the  Commission  on  Pensions  of  New  York  City 
and  published  in  1916,  gives  approximately  the  same  re- 
sult. A  list  of  55  industrial  pension  schemes,  including 
those  in  the  railroads,  is  given  as  a  result  of  this  investigation, 
in  which  an  effort  was  made  to  include  all  pension  plans  then 
in  existence.  In  34  of  the  plans  investigated,  the  employer 
assumes  the  entire  burden,  only  6  are  on  the  contributory 
plan,  and  no  data  are  given  for  15  companies.26 

Uniformity  of  Pension  Plans.  —  There  is  a  great  uni- 
formity of  pension  plans  within  industry.  Practically  all- 
are  based  on  earnings  (another  way  of  saying,  value  of  the 
employe)  and  the  percentages,  with  notable  exceptions, 
closely  approximate  each  other.  There  are  some  liberal 
percentages  of  salaries  allowed  but  these  are  usually  offset 
by  prerequisites  as  to  years  of  service. 

The  pension  system  established  in  1913  by  the  American 
Telephone  and  Telegraph  Company  for  its  employes  may  be 
quoted  as  a  typical  example  of  free  industrial  pension  plans.27 
The  employes  of  the  company  are  divided  into  three  classes, 
each  of  which  receives  pensions  equivalent  to  1  per  cent 
of  the  annual  average  pay  for  ten  years,  for  each  year  of  serv- 
ice. 

Class  A.  May  be  retired  either  at  their  own  request  or  at  the  dis- 
cretion of  the  Committee.  This  class  consists  of  employes  whose 
term  of  employment  has  been  20  years  or  more  and  who  have  reached 
the  age  of  60  (females  55). 

Class  B.  May  be  retired  on  pension  only  upon  approval  of 
President  or  Vice-President.  This  class  consists  of  the  employes 
whose  term  of  employment  has  been  25  years  or  more  and  who  have 
reached  the  age  of  55  (female  50). 

Class  C.  May  be  retired  on  pension  only  upon  approval  of 
President  or  Vice-President.  This  class  consists  of  employes  whose 
term  of  employment  has  been  30  years  or  more. 

Note.  The  minimum  pension  will  be  $20  a  month. 

Disability  Pensions  : 

Same  as  for  old  age,  granted  at  any  age  after  15  years  of  service. 


INSURANCE,  SAVINGS,  AND   LOANS  315 

Requirements  of  an  Employer's  Service  Pension.  —  If 
employers  wish  to  secure  the  beneficial  results  of  a  pension 
plan  and  not  do  an  injustice  to  their  employes,  certain 
standards  will  have  to  be  met.  If  payment  of  pensions  is 
granted,  it  should  be  assured  by  the  creation  of  an  adequate 
fund  or  by  the  employer's  guaranty,  or  by  both.  In  the 
event  of  the  discontinuance  of  the  service  pension  plan, 
provision  should  be  made  for  the  payment  of  pensions  al- 
ready granted,  preferably  by  purchasing  annuity  policies 
in  a  reliable  insurance  company.  Some  employers  contrib- 
ute percentage  on  wages  to  the  fund  as  services  are  ren- 
dered, but  this  implies  that  some  compensation  is  being 
withheld,  so  is  not  popular.  The  most  common  method 
is  for  the  employer  to  make  contributions  as  the  money  is 
required.28 

Separation  of  Invalidity  Insurance  from  Old  Age  Pensions. 
—  Thirty-three  of  the  fifty-five  pension  systems  studied 
by  the  National  Civic  Federation  include  disability  pen- 
sions.27 The  majority  may  be  granted  at  any  age,  but 
usually  a  prerequisite  number  of  years'  service  is  stipulated. 
This  brings  up  the  question  as  to  whether  an  old  age  pension 
system  should  include  a  disability  clause  to  provide  for 
those  who  must  retire  early  in  life  because  of  invalidity,  or 
whether  this  should  be  included  under  the  sickness  insurance 
scheme.  It  is  the  opinion  of  M.  M.  Dawson  that  service 
pensions  provided  by  the  employer  are  welcome  only  when 
there  is  no  other  available  provision,  and  thai  invalidity 
benefits  should  be  provided  by  joint  contribution  under 
the  sickness  insurance  scheme.28  This  enables  a  relatively 
high  pensioD  age,  with  retirement  rigidly  enforced  unless 
the  service  of  the  employe  is  exceptionally  valuable. 

Inadequacy  of  Pension  Scheme  within  Industry.  —  Even 
though  it  be  decided  thai  old  age  is  an  industrial  problem 
and  industry  should  be  compelled  to  bear  the  burden  of  its 
worn-out    human    lives,    the   difficulties    seem    to  outweigh 


316  THE   HUMAN   FACTOR   IN   INDUSTRY 

the  advantages.  Few  industries  have  been  willing  or  able 
to  develop  any  satisfactory  scheme.  Corporation  pension 
schemes  provide  for  the  better  class  of  mechanics  and  other 
well-paid  laborers.  They  do  not  reach  the  great  mass  of 
common  day-laborers.  Any  pension  scheme  for  employes 
with  one  corporation  as  the  unit  is  dangerous.  There  are 
too  many  firms  dissolved  to  make  this  safe.  And  the  vari- 
ous investigations  show  that  no  adequate  provision  is  made 
by  trade  unions  or  fraternal  societies. 

Compulsory  Contributory  Scheme.  —  Compulsory  con- 
tributory insurance  has  been  suggested  as  a  way  of  meet- 
ing the  problem  of  old  age,  but  the  difficulties  appear  in- 
surmountable. The  present  generation  of  people  would 
not  be  benefited.  A  complicated  system  of  accounts  with 
every  employed  person  would  be  necessary,  and  with  a  con- 
stantly shifting  population  this  would  be  impossible,  and 
still  all  those  who  are  not  wage  earners  would  remain  unpro- 
vided for. 

Service  Pensions  Paid  through  Taxation.  —  Squier,  who 
has  made  an  impartial  and  thorough  study  of  the  problem 
in  all  its  phases,  believes  that  the  state  must  provide  a  sys- 
tem of  service  pensions  for  its  old  and  worn-out  citizens. 
According  to  him,  voluntary  provisions,  as  industrial  con- 
ditions now  obtaining  clearly  manifest,  are  impossible.25 

Problem  of  Old  Man  in  Industry.  —  Systems  of  state  old 
age  pensions  exist  in  Great  Britain,  France,  Australia, 
New  Zealand,  Denmark,  and  Iceland.  It  is  possible  that  in 
the  United  States  the  States  may  ultimately  make  provi- 
sion for  the  burden  of  old  age.  In  the  meantime  the  prob- 
lem of  the  old  man  in  industry  remains.  It  is  to  the  ad- 
vantage of  the  employer  to  facilitate  the  retirement  of  the 
aged  worker.  He  is  a  handicap  to  industry ;  his  retention 
in  active  employment  after  he  has  passed  his  limit  of  ef- 
ficiency means  an  economic  waste  to  the  employer,  yet  the 
dismissal  of  such  a  worker  without  any  financial  provision 


INSURANCE,  SAVINGS,  AND  LOANS  317 

for  the  rest  of  his  life  is  an  injustice.29  The  motives  under- 
lying the  establishment  of  a  pension  scheme  are  twofold  : 
humanitarian  and  economic.  The  employer  with  any  hu- 
man sympathy  cannot  dismiss  an  old  yet  faithful  employe 
without  any  means  of  support.  A  pension  scheme  allows 
the  elimination  of  those  too  old  to  work  and  promotes 
contentment  and  loyalty. 

Insurance  the  Method  of  Eliminating  "  Passing  the 
Hat."  —  That  insurance  is  the  method  to  be  used  to  elimi- 
nate dread  of  destitution  and  "  passing  the  hat  "  is  no 
longer  a  disputed  question.  But  should  insurance  against 
the  economic  uncertainties  of  a  wage  earner's  life  be  made 
compulsory  for  all  adults,  for  certain  groups,  or  voluntary? 
And  should  this  insurance  be  carried  by  the  State,  private 
insurance  companies,  or  mutual  societies,  or  by  all  three  in 
competition?  Which  of  the  numerous  combinations  of 
these  methods  conforms  to  the  ideals  and  philosophy  of  the 
United  States?  It  should  be  based  on  existing  American 
conditions  and  afford  room  for  private  initiative  in  working 
out  the  details. 

In  addition  to  the  various  insurance  and  pension  schemes, 
industry  has  tried  to  encourage  the  employe  to  be  thrift y 
by  inaugurating  savings  plans  and  stock  ownership  schemes. 

Savings  and  Loan  Plans 

Problem  of  Saving.  —  Thrift  and  saving  have  been  sug- 
gested as  a  substitute  for  insurance,  but  in  order  to  meel 
future  expenditure  must    have   time    to  do  so,  while   he 

who  insures  himself  is  protected  from  the  moment  he 
takes  out  the  policy.  American  people  have  been  called 
thriftless;  in  SO  f:ir  as  thrift  implies  conservation  of  re- 
sources and  elimination  of  waste  do  one  would  deny  the 
value  of  instilling  thrift  into  the  minds  of  the  American 
people,  but  if  it  is  given  the  meaning  of  individual  saving  it 


318  THE    HUMAN    FACTOR   IN    INDUSTRY 

implies  surplus  in  the  wage  earner's  budget.  This  is  not 
always  the  case,  and  excessive  thrift  may  do  positive  harm 
in  lowering  the  standard  of  life.  A  study  recently  com- 
pleted by  the  United  States  Bureau  of  Labor  Statistics 
shows  that  during  the  interval  1907-1918  wages  increased 
48  per  cent,  while  retail  prices  of  food  increased  105  per 
cent.30  It  is  thus  no  wonder  that  the  wage  earner  finds  it 
difficult  to  save  and  the  problem  of  emergencies  becomes 
a  serious  one. 

Present  Provision  for  Savings  and  Loans.  —  Various 
efforts  have  been  made  to  rescue  the  wage  earner  from  his 
dilemma,  to  provide  means  for  ordinary  and  emergency  sav- 
ings and  loans  for  home  building.  The  savings  bank  will 
accept  his  small  savings,  building  and  loan  societies  en- 
courage home  owning,  and  various  forms  of  cooperative 
credit  have  arisen  to  provide  him  with  loans  in  case  of  emer- 
gency and  thus  to  do  away  with  the  loan-shark  evil. 

Building  and  Loan  Associations.  —  The  most  important 
contribution  of  the  United  States  to  the  cooperative  credit 
movement  is  the  building  and  loan  association.  In  August, 
1913,  there  were  6200  local  building  and  loan  associations, 
with  a  total  membership  of  more  than  2,500,000.  These  as- 
sociations provide  opportunity  for  home  building  and  for  long- 
time loans  with  real  estate  or  mortgage  securities,  but  they 
do  not  supply  the  need  for  the  short-time  remedial  loan.31 
Other  forms  of  cooperative  credit  have  therefore  been  de- 
veloped. 

Company  Associations.  —  By  means  of  company  savings 
and  loan  associations  employers  have  encouraged  ordinary 
savings  and  eliminated  the  loan-shark  with  the  worry  and 
loss  of  efficiency  among  employes  consequent  upon  deal- 
ings with  him. 

Variations  in  Plans.  —  A  study  made  by  the  National 
Association  of  Corporation  Schools  in  1917  gives  a  list  of  61 
companies  which  have  some  form  of  cooperative  savings 


INSURANCE,  SAVINGS,  AND   LOANS  319 

plan.  The  plans  vary  widely  in  the  following  features : 
interest  return  on  savings ;  limitation  of  sums  to  be  loaned ; 
interest  charged  for  such  loans ;  and  the  share  allotted  to 
the  employes  in  the  management  of  the  associations.32 

Managed  by  Employer.  —  The  purpose  of  the  New  York 
Edison  Company's  Savings  and  Loan  Association  is  two- 
fold —  to  encourage  saving  and  home  owning.  The  com- 
pany assumes  all  expenses,  paying  4-5  per  cent  interest  on 
savings,  and  making  loans  for  home  owning  purposes  to  80 
per  cent  of  the  property  value,  charging  6  per  cent  interest. 

Managed  by  Employes.  —  The  Savings  and  Loan  Bureau 
of  William  Filene  Sons'  Company,  Boston,  Mass.,  is  under 
the  direction  of  the  Cooperative  Association  of  the  em- 
ployes. The  officers  in  charge  are  elected  by  members 
of  the  Cooperative  Association,  but  the  company  guarantees 
against  losses  and  pays  5  per  cent  interest  on  savings.  A 
legal  note  must  be  given  for  sums  loaned  of  more  than 
$10.00. 

Employer's  Contributions.  —  The  Metropolitan  Staff  Sav- 
ings Fund  of  the  Metropolitan  Life  Insurance  Company, 
New  York  City,  is  unique.  The  company  contributes  half 
as  much  as  the  employe  saves.  Any  employe,  after  one 
year  of  service,  whose  earnings  are  not  in  excess  of  $3000  a 
year  may  be  a  depositor  in  the  fund,  but  no  employe  may 
deposit  in  one  year  more  than  5  per  cent  of  his  earnings. 
The  company's  deposits  may  be  drawn  out  in  the  event 
of  the  depositor's  death  or  permanenl  incapacity,  or  by 
vote  of  the  trustees  in  the  case  of  honorable  retirement 
following  twenty  years'  continuous  service.  The  em- 
ploye's deposit  may  be  withdrawn  at  any  time,  the  com- 
pany's contributions  standing  to  the  credit  of  the  remaining 
depositors."'' 

Cooperation  with  Outside  Bank.  —  In  some  cases  the  em- 
ployer serves  simply  as  an  intermediary  agent  between 
the  employe  and  a  bank.     The  Clothcraft  Shops  have  a 


320  THE   HUMAN   FACTOR   IN   INDUSTRY 

penny  bank  as  one  of  the  activities  of  the  Employment 
and  Service  Department.  Interest  is  paid  on  all  deposits 
over  one  dollar  remaining  in  the  bank  three  months  or  more. 
When  deposits  reach  $100  the  employe  is  advised  to  transfer 
his  savings  to  a  regular  savings  institution.  Small  loans 
are  also  made  by  this  department,  but  an  explanation  of  the 
reason  for  the  loan  is  required.14  The  Dodge  Manufactur- 
ing Company  started  a  Thrift  Club  as  an  additional  activity 
of  the  Dodge  Relief  Association.  When  the  plan  was  started 
no  interest  was  paid  on  the  deposits,  which  were  deducted 
from  the  weekly  wages.  After  making  this  test  the  com- 
pany began  paying  4  per  cent  interest  in  cash  every  six 
months  through  the  cooperation  of  a  bank.  The  amount  of 
weekly  deposits  doubled  almost  immediately.33  In  October, 
1917,  one  third  of  the  employes  of  the  company  were  mem- 
bers of  the  Thrift  Club.  The  company  believes  that  it  has 
in  this  way  proved  to  the  men  that  it  was  chiefly  careless- 
ness and  not  inadequate  wages  which  formerly  prevented 
them  from  saving. 

Stock-selling  Plans.  —  Another  method  by  which  cor- 
porations have  endeavored  to  promote  thrift  and  industrial 
peace  is  by  the  sale  of  stock  of  the  company  to  its  employes. 
Some  of  these  plans  are  inseparably  connected  with  a  profit- 
sharing  plan.  The  Sears  Roebuck  Company  has  devised  a  com- 
bination stock-purchasing  and  profit-sharing  plan,  in  which 
the  company  contributes  5  per  cent  of  the  net  earnings  and 
the  employe  deposits  5  per  cent  of  his  salary,  which  fund 
is  invested  in  stock  of  Sears  Roebuck  Company.  A  de- 
positor who  has  completed  ten  years  of  service  will  be  en- 
titled to  withdraw  all  the  money  credited  to  his  account, 
including  the  company's  contributions.  If  he  has  served 
less  than  ten  years  he  can  only  withdraw  his  contributions 
plus  interest  at  5  per  cent.34  Some  corporations,  such  as 
the  United  States  Steel  Corporation  and  the  International 
Harvester  Company,  have  stock-purchase  plans  for  the  rank 


INSURANCE,  SAVINGS,  AND   LOANS  321 

and  file.  In  most  of  these  plans  the  employes  are  offered 
the  opportunity  to  purchase  the  stock  upon  especially  ad- 
vantageous terms,  paying  for  it  in  installments.  On  May  28, 
1919,  the  Eastman  Kodak  Company  offered  to  its  employes 
twenty  thousand  shares  at  par  value  of  $100  per  share, 
purchasable  in  installments.  The  market  value  at  that  time 
was  something  over  $570.  The  employe  is  not  allowed  to 
sell  his  stock  for  five  years,  but  if  he  leaves  the  company  he 
receives  par  value,  or  the  amount  he  has  paid.  The  inter- 
ests of  the  employes  are  safeguarded  by  equal  representation 
upon  committees  formed  to  deal  with  all  such  matters  im- 
partially.35 

Credit  Unions.  Objects.  —  A  comparatively  new  de_ 
velopment  of  the  remedial  loan  movement  in  this  country 
is  that  of  the  Credit  Union.  This  form  of  cooperative 
credit  is  known  in  Germany  as  the  Cooperative  Credit 
Association,  in  Ireland  as  the  Credit  Society,  in  Italy  and 
Canada  as  the  People's  Bank.  Its  objects  are  threefold : 
(1)  To  encourage  thrift  by  providing  a  safe  method  for 
members  to  invest  savings.  (2)  To  provide  a  means 
whereby  members  can  borrow  at  a  reasonable  rate  of  in- 
terest. (3)  To  train  members  in  business  methods  and 
self-government  .36 

Organization. — The  Credit  Union  is  a  cooperative  or- 
ganization which  may  be  used  as  a  depository  for  savings 
and  will  in  turn  extend  credit  to  a  man  with  his  char- 
acter and  personal  worth  as  security.  The  principles  of 
credit  unionism  are:  (1)  Equality.  All  members  share 
equally  in  privileges  and  ratably  in  profits.  (2)  Democ- 
racy. The  one-man-one-vote  principle  is  fundamental. 
Each  member  has  but  one  vote  irrespective  of  the  number 
of  shares  he  may  hold. 

Membership.  —  Any  number  of  persons  may  combine 
to  organize  a  Credit  Union,  in  a  city,  town,  or  rural  commu- 
nity.    While  the  members  of  the  group  should  assume  the 


322  THE    HUMAN    FACTOR    IN    INDUSTRY 

responsibility  it  is  important  that  the  State  regulate  Credit 
Unions  to  make  sure  that  they  are  safe.  Massachusetts  was 
the  first  State  to  pass  such  a  law.  This  was  in  1909,  and 
since  that  time  seven  other  States  have  followed  suit.  The 
basis  of  membership  in  a  Credit  Union  must  be  some  common 
bond  or  community  of  interest.  It  may  be  common  occupa- 
tion, employment  by  the  same  establishment,  or  membership 
in  the  same  church,  club,  lodge,  labor  union,  or  other  or- 
ganization. In  rural  communities  the  church  parish,  school 
district,  or  local  grange  furnishes  a  satisfactory  foundation 
for  membership.  Large  numbers  of  men  employed  in  one 
establishment  or  organization  are  usually  divided  into 
departmental  or  divisional  groups.  These  groups  may 
be  taken  as  the  basic  units  for  the  organization  of  Credit 
Unions.  This  is  true  of  department  stores,  railroads,  and 
most  establishments  in  which  large  numbers  are  employed. 
These  groups  may  be  federated  to  good  advantage,  but  the 
individual  Credit  Union  should  not  be  so  large  as  to  become 
unwieldy.     The  smallest  workable  unit  is  about  twenty-five. 

Security  for  Loans.  —  Ordinarily  the  security  that  a 
Credit  Union  demands  for  loans  is  a  promissory  note  of  the 
borrower  with  one  or  more  indorsements,  supplemented 
by  a  lien  upon  the  borrower's  shares  and  deposits  in  the 
Credit  Union.  The  requirement  of  indorsements  may  be 
waived  in  some  cases  if  the  loan  is  for  a  small  amount. 
Large  loans  may  also  be  made  to  members  upon  security 
or  mortgage  of  real  or  personal  property,  but  unless  the 
Credit  Union  has  an  abundance  of  funds,  preference  should 
be  given  to  the  smaller  loans. 

Rates  of  Interest.  —  The  rate  of  interest  on  loans  should 
approximate  as  nearly  as  possible  the  banking  rate  of  inter- 
est. In  New  York  the  maximum  rate  which  may  be  charged 
is  12  per  cent  per  annum.  The  rate  of  interest  paid  on 
deposits  may  be  variable  and  should  be  fixed  at  regular 
intervals.     It  should  not,   however,  exceed  by  more  than 


INSURANCE,   SAVINGS,   AND   LOANS  323 

1  per  cent  per  annum  the  rate  paid  by  the  savings  banks 
in  the  vicinity.  Deposits  should  draw  interest  from  the 
beginning  of  each  calendar  month,  but  interest  should  be 
paid  quarterly.31 

The  Credit  Union  Primer,  compiled  by  Arthur  H.  Ham 
and  Leonard  G.  Robinson  and  published  by  the  Remedial 
Loan  Division  of  the  Russell  Sage  Foundation,  gives  in- 
struction, by-laws,  forms,  and  records  to  serve  as  guides 
to  groups  desiring  to  form  Credit  Unions.  This  plan  may 
serve  as  a  guide,  but  may  be  modified  to  meet  any  set  of 
circumstances. 

Success  of  Credit  Union  with  Industrial  Group  as  Unit. 
—  That  the  Credit  Union  with  the  industrial  group  as  a 
unit  has  proved  successful  in  encouraging  small  savings 
and  ridding  the  employe  of  the  harassing  influence  of  the 
loan-shark  is  verified  by  statement  of  the  Postal  Telegraph 
Company  and  Mr.  Springstead  of  the  United  States  Ap- 
praisers' Office  of  New  York.  For  years  the  employes  of 
the  Postal  Telegraph  Company  have  been  paying  tribute  to 
the  loan-shark.  The  Credit  Union  has  enabled  the  operator 
to  maintain  his  self-respect  in  the  knowledge  that  he  has  a 
savings  account  in  the  Credit  Union  and  the  privilege  of 
borrowing  therefrom  at  a  reasonable  rate  of  interest  for  any 
legitimate  purpose.  Mr.  Springstead  makes  the  statement 
that  there  is  no  question  of  the  value  of  the  Credit  Union 
to  both  employer  and  employe,  in  eliminating  the  loan- 
shark  evil.  This  Credit  Union  was  organized  in  1 01 G  for 
all  Federal  employes  in  New  York  City.  The  membership 
has  now  reached  1200  and  has  recently  been  restricted  to 
employes  of  the  Appraisers'  Office,  because  a  larger  mem- 
bership would  become  unwieldy. 

Difficulty  of  Stock-selling  Plans.  —  The  difficulty  with 
many  stock-selling  plans  is  thai  they  may  hamper  the  free- 
dom of  the  employes.  Any  such  plan  should  be  subject 
to  two   important  qualifications:     (a)  Becoming   a  stock- 


324  THE    HUMAN   FACTOR    IN    INDUSTRY 

holder  should  be  absolutely  voluntary;  (6)  adequate 
provision  should  be  made  for  employes  leaving  the  com- 
pany to  dispose  of  their  stock  without  loss.  But  even  though 
these  regulations  are  followed  there  is  no  great  advantage 
to  the  employer;  the  ownership  of  one  share  of  stock  in  a 
$1,000,000  corporation  can  hardly  have  any  marked  effect 
upon  efficiency,  and  to  the  employe  the  danger  is  great. 
It  is  commonly  estimated  that  95  per  cent  of  all  business 
enterprises  fail.  There  are  a  few  corporations  in  which 
the  stock  is  comparatively  safe,  but  in  any  event  it  is  con- 
trary to  good  business  principles  for  any  one  to  put  all  his 
eggs  into  one  basket. 

Combating  the  Loan-shark.  —  In  order  to  meet  emer- 
gencies the  wage  earner  has  often  had  to  become  the  victim  of 
the  loan-shark  charging  from  100  to  150  per  cent  per  annum 
for  small  loans.  A  service  manager  of  a  Michigan  manu- 
facturing plant  has  succeeded  in  freeing  his  men  from  loan- 
sharks  by  an  interesting  experiment.  Soon  after  accepting 
his  position  he  discovered  that  in  the  neighborhood  of  400 
of  the  employes  of  the  company  were  in  the  clutches  of  the 
loan-shark.  One  man  had  not  drawn  his  own  salary  for  13 
years.  To  combat  this  evil  a  conference  was  held  with  the 
loan-sharks,  at  which  they  were  told  that  the  company  would 
investigate  each  claim  and  decide  the  amount  that  should 
be  paid,  leaving  the  court  as  the  loan-shark's  only  recourse. 
The  loan-shark  cannot  brave  the  courts,  because  in  most 
cases  he  has  been  breaking  a  law.  This  procedure  proved 
so  successful  that  at  the  end  of  three  months  there  was  not  a 
salary  assignment  left  in  the  office.  This  company  realized 
the  necessity  of  providing  a  substitute  for  the  small  loan. 
The  wage  earner  often  must  borrow  sums  from  $10  to  $75 ; 
so  a  fund  was  provided  with  which  to  take  care  of  these 
small  loans.37 

Credit  Union.  —  There  seems  to  be  no  good  reason  why  an 
ordinary   savings   bank  would    not   cooperate  and   accept 


INSURANCE,  SAVINGS,  AND   LOANS  325 

even  the  smallest  deposits ;  but  the  workingman  needs  more 
than  a  safe  depository  for  surplus  earnings.  In  evaluating 
any  of  the  several  savings  and  loan  systems  the  following 
points  are  important :  the  banking  hours  must  conform 
to  the  employes'  convenience;  the  agency  must  be  con- 
veniently located  and  the  depositor  must  be  encouraged  to 
deposit  small  amounts  of  less  than  a  dollar ;  credit  should  be 
extended  to  him  with  his  character  as  security.  The  Credit 
Union  seems  to  meet  all  these  requirements,  and  provid- 
ing the  American  people  can  prove  their  ability  to  engage 
in  cooperative  undertaking  there  seems  to  be  no  reason  why 
the  savings  and  credit  function  should  not  be  combined  in 
this  satisfactory  way. 

The  objection  to  the  Credit  Union  in  this  country  is  that 
the  people  are  too  individualistic  for  any  cooperative 
undertaking;  but  although  experience  is  small  it  indicates 
that  certain  groups,  such  as  the  employes  of  one  firm,31 
possess  the  requirements  for  such  an  organization.  The 
employer  may  think  it  advisable  to  encourage  his  employes 
to  form  a  Credit  Union,  which,  owned  and  managed  entirely 
by  themselves,  will  cultivate  self-respect  and  knowledge  of 
business  methods  and  will  increase  efficiency. 


CHAPTER  XII 

ORGANIZATION  OF  THE  DEPARTMENT  OF  LABOR 
ADMINISTRATION 

Purpose  of  Labor  Administration.  —  Wages  —  the  return 
for  the  work  done,  and  the  possibility  of  increased  return 
as  time  goes  on  —  are  the  worker's  prime  interest.  But  in 
addition  any  facilities  that  will  make  the  worker  healthy, 
add  to  the  joy  of  his  work  and  give  him  an  interest  in  it  will 
add  to  the  productivity  of  the  individual  and  the  completeness 
of  his  life.  A  workman  who  is  ill  is  a  burden  to  himself, 
to  his  family,  and  to  the  industry  in  which  he  is  employed. 
The  healthy  workman  is,  in  all  probability,  the  reverse. 
The  need  for  greater  total  and  hourly  output  and  the  need 
for  more  leisure  for  recreation,  will  always  make  efficiency 
in  production  a  common  goal  for  employer  and  employe. 
Labor  administration  should  make  industry  more  effective 
by  making  the  workers  more  efficient,  and  the  output  for 
each  hour  of  effort  better  in  quality  and  greater  in  quantity. 

Current  Misunderstanding.  —  Both  employers  and  em- 
ployes have  largely  failed  to  appreciate  this  mutual  interest 
in  service  activities.  The  antagonism  between  the  manage- 
ment and  the  rank  and  file  in  industry  has  been  created  by 
disputes  over  wages  and  the  division  of  product,  and  as  a 
result  has  unfortunately  interfered  with  the  introduction 
of  those  services  for  employes  which  aim  to  increase  pro- 
ductivity and  should  only  benefit  the  workers  and  in  no 
wise  injure  them.  The  management  has  often  been  respon- 
sible for  this  antagonism  by  failing  to  make  clear  the  distinction 
between  the  reward  for  labor  which  a  workman  receives  in  the 

326 


DEPARTMENT    OF    LABOR  327 

form  of  wages,  and  the  services  rendered  him  as  an  employe, 
which  should  not  be  intended  as  a  reward  for  labor  but  for  the 
sole  purpose  of  increasing  his  effectiveness.  Thus  railroad 
executives  during  the  period  of  stress  before  the  passage  of 
the  Adamson  law,  sought  to  use  the  Pension  Funds  as  a  club 
to  restrain  the  workers  from  striking.  Such  action  by  the 
management  of  one  industry  contributes  to  the  spreading 
of  an  attitude  of  suspicion  among  all  employes  against  all 
forms  of  so-called  "  service  for  employes."  The  steel 
workers  included  as  a  demand  in  the  recent  steel  strike  the 
elimination  of  the  medical  examination  of  employes  in  that 
industry,  one  of  the  most  vitally  necessary  provisions  for 
the  protection  of  their  own  health  and  labor  power.  Both 
sides  fail  to  realize  that  the  introduction  of  medical  care 
for  employes,  or  of  a  rest  room,  or  restaurant,  like  the  intro- 
duction of  any  new  machinery,  is  mutually  desirable  if  it 
increases  production,  but  that  it  must  do  so  without  unduly 
restricting  individual  liberty.  It  has  nothing  to  do  with 
wages.  If  offered  as  a  substitute  for  wages  or  in  any  way 
used  as  a  means  of  detecting  "  undesirable  "  employes  its 
failure  is  easily  foretold.  Service  activities  in  their  limited 
field  should  yield  large  returns.  They  will  not  forestall  trade 
unionism,  they  will  not  solve  disputes  over  wages,  and  unless 
directed  with  vision,  they  will  not  develop  an  esprit  de  corps. 
Preliminary  Study.  —  The  approach  to  the  problems  in- 
volved in  the  organization  of  that  most  delicate  and  intri- 
cate of  machinery,  the  plant  personnel,  must  be  scientific. 
Sentimentality  and  beneficence  avail  Little  in  service  work. 
The  preliminary  study  for  the  development  of  any  phase 
of  the  work  should  include  an  analysis  of  (a)  the  ueed  for  it 
from  the  standpoint  of  production  and  the  individual  em- 
ploye, (b)  the  best  way  to  fill  the  need,  (c)  the  demands  and 
attitude  of  the  workers  in  regard  to  it,  and  (<l)  unavoidable 
limitations  as  to  the  scope  of  service  to  be  rendered.  Atten- 
tion must  be  paid  to  the  existing  facilities  for  such  service 


328  THE    HUMAN   FACTOR    IN    INDUSTRY 

in  the  industry  and  community,  the  difference  in  the  needs  of 
a  shop  or  clerical  force,  of  a  male,  mixed,  or  female  force,  and 
of  employes  coming  from  different  types  of  homes  and  sur- 
roundings. The  way  to  fill  the  need  can  be  determined 
only  after  an  analysis  of  all  available  information  as  to  the 
value  of  the  various  methods  in  use.  The  approval  of  the 
workers  is  necessary  if  the  service  is  to  be  fully  utilized. 
Consultation  with  them  in  order  to  determine  the  best 
ways  to  fill  the  needs,  to  sound  out  possible  objections,  and 
to  define  clearly  the  purpose  and  scope  of  service  contem- 
plated, will  avoid  future  misunderstandings.  For  example, 
employes  should  know  that  a  medical  department  designed 
solely  for  first-aid  and  emergency  treatment  cannot  give 
attention  to  more  serious  illnesses,  or  those  requiring  the 
latter  attention  will  by  their  criticism  reduce  the  value  of 
the  entire  undertaking.  Again,  the  space  available  for  equip- 
ment in  the  plant  premises  or  environs  will  affect  the  form 
of  service  that  is  to  be  offered. 

Need  for  Experts.  —  The  organization  and  administration 
of  the  work  of  the  service,  employment,  health,  and  other 
branches  of  labor  administration  belong  in  the  hands  of 
experts.  This  is  true  whether  the  management,  the  workers, 
or  a  combination  of  the  two  determine  the  broad  policies 
to  be  followed.  Labor  administration  is  not  child's  play. 
It  is  rather  the  work  of  especially  trained  and  unusually 
capable  people.  Specialists  must  decide  upon  the  mental, 
temperamental  and  physical  requirements  of  the  different 
jobs  of  the  industry,  on  the  kinds  of  fire  escapes  needed,  the 
heating,  lighting,  and  ventilating  systems  adapted  to  the 
construction  of  the  plant  and  the  needs  of  the  workers,  and 
on  all  other  service  methods  and  equipment.  They  must 
further  devise  the  statistical  records  to  show  the  value  of  the 
various  experiments  made.  If  the  size  of  the  plant  does  not 
warrant  the  continuous  employment  of  such  experts,  the 
employment  manager  or  general  supervisor  of  personnel, 


DEPARTMENT   OF   LABOR  329 

like  the  family  physician,  must  call  specialists  in  consulta- 
tion to  diagnose  existing  difficulties  and  to  suggest  remedies. 

Importance  of  Attitude.  —  The  mere  installation  of  serv- 
ice equipment,  no  matter  how  complete,  will  be  ineffective 
without  efficient  continuous  management  by  those  who 
have  not  only  technical  knowledge  and  training,  but  also 
an  appreciation  of  method  and  purpose.  The  spirit  in 
which  the  work  is  undertaken  and  carried  on,  the  earnest- 
ness of  the  desire  in  those  who  administer  it  to  secure  the 
fullest  cooperation  of  the  employes  in  solving  these  human 
problems  of  production,  remain  the  chief  factors  in  success. 
The  qualifications  for  those  in  charge  of  the  different  branches 
of  service  vary  greatly. 

The  Employment  Manager.  —  The  employment  manager, 
for  instance,  is  expected  to  be  "  a  specialist  in  human 
relationship."  "  It  is  much  better  and  requires  less  time 
and  expense  to  teach  an  experienced,  well  trained  employ- 
ment manager  the  necessary  details  of  shipbuilding  to 
qualify  him  sufficiently  to  handle  his  work,  than  it  does 
to  take  a  man  who  knows  all  about  ships  and  try  to  teach 
him  the  principles  of  modern  employment  management, 
and  to  develop  within  him  the  personal  qualifications  nec- 
essary to  handle  men,"  claims  the  Industrial  Service 
Section  of  the  Emergency  Fleet  Corporation.1  Beyond 
the  supposition  that  an  employment  manager  is  a  "  master 
of  system  "  he  must  be  courteous  and  even-tempered, 
sympathetic,  just,  intuitive,  quick  and  sure  in  decision, 
firm  and  of  the  motor  type,  from  which  arises  executive 
energy.  He  must  be  able  to  analyze  the  facts  related  to 
his  work,  and  have  the  constructive  imagination  to  solve 
the  many  problems  which  arise.  Interviewing  applicants 
for  work  is  in  itself  a  skilled  occupation  and  demands  in 
addition  to  these  personal  and  mental  qualities,  a  knowledge 
of  sources  of  labor  supply,  educational  institutions,  psychol- 
ogy, and  the  technical  processes  of  the  business  of  the  firm.2 


330 


THE   HUMAN   FACTOR   IN   INDUSTRY 


The  type  of  functions  shown  in  the  following  chart  indi- 
cates the  problems  to  be  handled  whether  the  employment 
manager  serves  in  all  capacities,  or  only  as  the  directing 
head. 


Employment 
Manager 


Assistant  Employment 
Manager 


/    Hiring    \ 
\  Division  / 


(  Adjustment  and  Employe 


Relations  Division 


\       I    Clerical  \ 
j       \  Division  / 


Assistant 

Employment 

Manager 


Employment 
Manager 


Chief 
Clerk 


Interviewer 


Inspector   . 
of 
Applications 


Pass  and 
Rate  Clerks 


Office  Force 
Clerks, 
Stenographers, 
Messengers 


The  Industrial  Physician.  —  Industrial  medicine  is  like- 
wise a  profession  in  itself,  distinct  from  that  of  ordinary 
medical  practice.     As  one  hygienist  has  said  : 3 

Employers  should  consider  that  two  types  of  mind  are  needed  for 
industrial  medical  service  —  one  capable  of  expressing  policies  and 
able  to  organize  the  staff  and  direct  the  work,  the  other  competent 
in  details  and  qualified  to  do  the  routine  work.  .  .  .  Physicians  are 
apt  to  be  of  the  latter  type.  ...  To  be  sure,  some  physicians  are 
endowed  with  administrative  capacity  which  refuses  to  be  stifled 
(by  the  medical  training  in  details).  By  surrounding  themselves 
with  skillful  assistants  and  directing  their  efforts  wisely  they  become 
successful  and  usually  prominent  in  their  profession.  This  is  the 
kind  of  physician  that  is  most  able  to  direct  industrial  medical  de- 
partments, and  employers  would  do  well  to  select  this  type  when  in 


DEPARTMENT    OF    LABOR 


331 


need  of  the  services  of  chief  physicians.  To  secure  competent  physi- 
cians for  places  where  only  one  doctor  is  needed,  with  possibly  one 
nurse  or  other  aid,  is  exceedingly  difficult,  as  the  duties  are  such  as 
to  require  the  exercise  of  initiative  as  well  as  attention  to  the  details 
of  routine  work,  including  the  keeping  of  records  and  the  making  of 
reports,  matters  in  which  doctors  are  notoriously  neglectful.  .  .  . 
It  is  best  to  secure  for  these  positions,  if  possible,  doctors  who  have 
acted  as  assistants  in  established  industrial  medical  departments, 
and  while  there,  have  shown  talent  for  management.  This  also  ap- 
plies to  the  choice  of  chief  physicians  for  those  departments  in  which 
the  executives  are  expected  to  do  part  of  the  routine  work,  the  size 
of  the  establishments  necessitating  the  employment  of  several  doc- 
tors but  not  justifying  the  devotion  of  one  man's  whole  time  to  ad- 
ministration. 

In  the  large  industry  the  medical  department  may  require 
the  services  of  a  technically  qualified  personnel : 


Chief  Physician 


(Special  Clinics)       (Medical  Examination)  (Dispensary) 


Oculist 


Dentist 


Doctors 


Roentgen- 
ologist 


Assistant 


Assistant 


Nurse 


Clerical 

Staff 


Doctors 


Nurse 


( 'lerical 

Staff 


Laboratory 
Experts 


Similar  specifications  of  function    attend    the    adminis- 
tration of  the  departments  of  safety  and  sanitation,  educa- 


332  THE   HUMAN   FACTOR   IN   INDUSTRY 

tion  and  of  general  service  for  employes,  concerned  with  lunch 
rooms,  recreation,  plant  publications  and  other  activities. 
This  is  true,  let  us  reiterate,  whether  the  plant  is  small  or 
large,  and  under  democratic,  cooperative,  or  autocratic 
management.  If  the  plant  is  small,  the  technical,  mental, 
and  temperamental  qualities  of  these  various  administrators 
must  be  combined  as  far  as  possible  in  one  or  two  people, 
instead  of  being  distributed  among  a  number.  If  the  plant 
policies  are  controlled  by  the  entire  personnel  of  the  plant, 
or  by  a  joint  committee  representing  the  management  and 
employes,  or  by  a  financial  directorship,  the  administration 
of  these  branches  of  service  must  still  be  relegated  to  special- 
ists. 

Department  Organization.  —  In  many  industries  some 
sort  of  labor  administration  for  employes  already  exists. 
In  some  instances,  elaborate  equipment  with  a  multiple 
personnel  has  been  accumulated  for  the  sole  purpose  of 
caring  for  the  human  machinery,  but  so  gradually  and  un- 
consciously that  the  work  has  not  been  centralized  or  con- 
trolled. 

Obviously  the  medical  department  cannot  function  to 
the  best  advantage  unless  the  cooperation  of  the  employ- 
ment department  facilitates  the  transfer  of  an  employe  from 
an  occupation  to  which  he  is  not  physically  suited  to  an- 
other more  favorable  one.  The  work  of  the  employment 
manager,  on  the  contrary,  is  held  up  unless  the  medical 
examiner  is  acquainted  with  the  physical  specifications  for 
various  jobs.  Such  correlation  can  only  be  secured  where 
every  branch  of  the  administration  of  labor  is  under  the 
supervision  of  a  chief  executive. 

Control  of  Policy.  —  Even  before  the  present  movement 
to  "  democratize  industry  "  and  "  to  give  the  workers  an 
increasing  share  of  control,"  service  activities  were  often 
managed  jointly  by  employer  and  employes.  Mutual 
Benefit  Associations  have  been  organized  in  consultation 


DEPARTMENT   OF   LABOR  333 

with  the  management  of  a  plant,  consulting  safety  com- 
mittees have  grown  up  with  the  organized  safety  move- 
ment, and  recreation  with  the  plant  as  a  center  has  long 
been  under  the  control  of  employes  in  some  plants.  Co- 
operative effort  has  frequently  proved  to  be  more  effective 
in  developing  service  activities  than  management  solely 
by  employers  or  employes.  The  success  of  certain  Mutual 
Benefit  Associations  has  been  attributed  to  the  check  on 
malingering  furnished  by  the  interested  employes.  Again, 
there  are  instances  of  the  failure  of  recreational  activities 
instituted  by  employers  which,  when  converted  to  the  manage- 
ment of  employes,  became  signal  successes.  The  cooperation 
of  the  management  provides  a  needed  element  of  continuity 
in  the  organization  of  services  for  employes.  In  a  unionized 
industry,  moreover,  the  spokesmen  of  the  workers  must  be 
consulted  in  the  early  stages  of  planning  service  work. 
Wherever  the  control  is  lodged,  every  one  must  understand 
in  advance  where  the  final  decision  in  the  enforcement  of 
policy  rests.  If  an  employer  forbids  a  customary  meeting 
on  company  property  at  which  the  employes'  association 
will  be  addressed  by  some  one  or  on  some  subject  not  ap- 
proved by  the  management,  much  discussion  and  consequent 
hard  feeling  may  arise  unless  the  employer's  censorship 
powers  have  been  well  defined  to  begin  with. 

Democracy  in  Industry  Not  a  Technical  Problem.  —  This 
is  clearly  brought  out  by  Mr.  Leiserson,  impartial  Chair- 
man of  the  Labor  Adjustment  Board,  Rochester,  N.  Y., 
who  says : 4 

Committees  of  employes  may  be  used  by  the  technical  men  who 
handle  the  personal  relations  in  industry,  but  they  are  not  the  same 
kind  of  organizations  of  employes  that  are  needed  to  deal  with  the 
economic  or  governmental  relations.  The  first  can  be  permitted 
to  offer  to  the  management  only  advice  and  suggestions.  The 
second  must  have  a  veto  power  on  the  acts  of  the  management,  and 
will  sooner  or  later  demand  an  equal  voice  in  determining  wages 
and   hours   and   controlling   discipline.  .  .  .     Welfare   committees 


334  THE   HUMAN   FACTOR   IN   INDUSTRY 

.  .  .  deal  with  personal  problems  only,  with  personal  management 
questions;  yet  either  in  ignorance  or  as  a  subterfuge,  they  are 
commonly  offered  to  employes  as  industrial  democracy.  .  .  .  This 
is  playing  with  fire.  .  .  .  Any  employer  who  is  not  ready  for  collec- 
tive bargaining,  who  is  not  looking  toward  turning  over  to  his  em- 
ployes 50  per  cent  of  his  control  over  terms  and  conditions  of  employ- 
ment, had  better  beware  of  shop  committees.  If  he  desires  merely 
to  improve  the  personal  relations  between  his  management  and  his 
men,  if  he  wants  only  to  be  brought  into  closer  contact  with  his 
employes  for  the  purpose  of  insuring  a  square  deal  to  them  as  he 
sees  it,  .  .  .  then  all  he  needs  is  a  good  employment  and  service 
organization.  .  .  .  Shop  committees  are  not  at  all  necessary,  and 
they  are  likely  to  confuse  the  managers  with  issues  of  democratic 
control  of  industry,  while  the  employes  may  be  misled  into  thinking 
they  are  going  to  have  a  real  voice  in  the  management  and  become 
resentful  and  rebellious  when  they  find  out  the  truth.  If  these 
advisory  committees  are  used  in  personnel  management  work  it  is 
very  important  that  most  careful  explanations  be  made  to  the 
employes  so  that  they  will  not  misunderstand. 

So  while  Labor  Administration  and  such  committees  as  may- 
be developed  in  connection  with  it  are  concerned  with  in- 
creasing production,  the  so-called  "  employer's  union," 
workshop  committee,  or  joint  management  boards  are  con- 
cerned chiefly  with  the  division  of  product.  The  English 
Whitley  reports,  it  is  true,  emphasized  throughout  the  im- 
portance of  increasing  production  in  advocating  the  program 
of  joint  control  of  the  management  of  workers  and  capital. 
As  a  result,  service  activities  naturally  formed  an  integral 
part  of  the  work  of  the  Joint  District  Councils  and  Works 
Committees  recommended  by  them.  This  function  was, 
however,  of  secondary  importance  to  that  of  the  adjustment 
of  wages  and  grievances.  Likewise,  with  the  "  Company 
Unions  "  developed  in  the  United  States  by  the  Shipping 
Board,  the  War  Labor  Board  and  individual  employers, 
their  initial  programs  have  mentioned  the  importance  of 
production  and  turned  over  to  employes  the  control  of 
service  work,  but  the  real  interest  has    been  in   creating 


DEPARTMENT   OF   LABOR  335 

permanent  arbitration  boards  to  eliminate  strikes.  This 
object  if  achieved  would  naturally  increase  gross  produc- 
tion, but  not  necessarily  the  effectiveness  of  the  individual 
worker.  These  organs  of  "  democracy  "  thus  deal  essentially 
with  the  negative  aspect  of  production,  that  of  doing  away 
with  friction,  rather  than  with  the  positive  aspect  of  pro- 
ducing more  goods  per  hour  per  worker.  The  purport  of 
these  workshop  committees  in  connection  with  caring  for 
the  human  machinery  of  a  plant,  with  which  we  are  here  con- 
cerned, is  merely  to  indicate  the  general  tendency  to  appre- 
ciate the  mutual  benefits  of  efficiency,  and  the  fact  that 
mutual  consent  alone  permits  efficiency.  Experience  with 
them  has  been  too  brief  to  warrant  a  detailed  statement  of 
results  at  this  time.  The  tendency,  however,  cannot  be 
ignored  in  the  organization  of  any  phase  of  labor  adminis- 
tration. 

Lessening  Importance  of  Control.  —  The  importance  of 
the  control  of  service  activities  will  decrease  as  rapidly  as 
scientific  knowledge  accumulates  and  a  general  mutual 
understanding  between  management  and  men  prevails. 
The  question  of  safety  devices  rarely  if  ever  appears  in  union 
demands  or  individual  contracts.  "  Safety  "  has  become  a 
science  recognized  by  both  employer  and  employe  as  a  prob- 
lem of  production  and  is  no  longer  a  subject  of  disputes  and 
arbitration.  The  same  may  soon  be  true  of  working  hours; 
for  instance,  if  scientific  experiment  proves  that  eight  hours 
or  six  hours  or  some  other  period  is  the  most  productive  one 
for  the  working  day  in  a  given  occupation,  the  length  of 
the  working  day  will  then  be  removed  from  the  field  of 
barter  and  discussion  along  with  many  other  subjects  which 
now  concern  the  individual  worker. 

In  the  meantime,  it  is  well  to  realize  the  value  of  coopera- 
tion which  is  illustrated  by  the  following  story.  In  England, 
at  the  beginning  of  the  war,  a  long-established  munitions 
factory  built  a  new  shop  almost  identical  in  equipment  and 


336  THE   HUMAN   FACTOR   IN   INDUSTRY 

construction  with  the  older  shops.  Within  six  months  the 
newer  and  more  inexperienced  hands  in  this  shop'  had  so 
far  outstripped  the  older  workers  in  efficiency  that  they  were 
producing  13,000  articles  a  week  instead  of  the  5000  which 
had  been  expected,  estimating  on  the  rate  of  output  in  the 
older  shops.  The  only  explanation  was  that  the  patriotic 
zeal  of  these  new  workers  was  not  hampered  by  "  the  long 
standing  customary  restrictions  upon  habits  or  rhythms  of 
work  "  which,  in  spite  of  patriotic  zeal,  retarded  the  speed 
of  the  older  workers.  If  willing  effort  and  esprit  de  corps 
can  thus  triple  the  output  of  indifferent  labor,  the  enlistment 
of  the  workers'  interest  in  their  work  and  in  output  becomes 
the  supreme  goal  for  employers.5  Service  work  should  help 
to  achieve  this  end.  Success  awaits  the  extension  of  service 
activities  in  any  industry,  if  employer  and  employe  are  bent 
only  on  securing  through  them  increased  effectiveness  for  each 
individual,  and  for  the  business  as  a  whole.  With  such  a 
concept  the  old  paternalistic  approach  has  no  place.  Service 
for  the  worker  becomes  solely  and  frankly  a  business  proposi- 
tion in  which  each  employe  from  the  president  down  is  in- 
terested. The  development  of  any  single  activity  must  be 
carefully  considered,  its  introduction  must  be  such  as  to 
promise  maximum  returns,  and  its  development,  adminis- 
tration, and  control  must  bring  increasing  results. 


LIST  OF   REFERENCES 


THE  INTRODUCTION 

1.  Salzmann,  L.  F. ;  English  Industries  of  the  Middle  Ages;  Boston,  Houghton 
Mifflin  Co.,  1913,  p.  231. 

2.  Jack,  A.  F. ;  An  Introduction  to  the  History  of  Life  Assurance;  London,  King, 
1912,  Footnote,  p.  119. 

3.  Salzmann,  L.  F. ;  p.  230. 

4.  Dunlop,  O.  J.,  and  Denmann,  R.  D. ;  English  Apprenticeship  and  Child  Labor; 
N.  Y.,  Macmillan  Co.,  1912,  p.  56. 

5.  Jack,  A.  F.;  p.  119. 

0.  Lipson,  E. ;  An  Introduction  to  the  Economic  History  of  England;  London, 
Black,  1915,  p.  306. 

7.  Smith,  J.  T. ;  English  GuiMs;  London,  L.  Trubner  &  Co.,  1870,  p.  xxxvi. 

8.  Lipson,  E. ;  p.  305. 

9.  The  following  account  of  Robert  Owen's  activities  at  New  Lanark  is  taken 
from  Podmore,  F. ;  Robert  Owen;  London,  Hutchinson  &  Co.,  1906,  Vol.  I,  p.  80-183. 
Gilman,  N.  P. ;  A  Dividend  to  Labor;  Boston,  Houghton  Mifflin  Co.,  Chap.  III. 

10.  Proud,  D.  E. ;  Welfare  Work;  London,  G.  Bell  &  Sons,  Ltd.,  1916,  p.  292-293. 

11.  Gilman,  N.  P.;  p.  59. 

12.  Ibid. ;  p.  125. 

13.  Ibid. ;  p.  135. 

14.  Profit  Sharing  by  American  Employers;  Nat.  Civic  Fed.,  p.  19. 

15.  Gilman,  N.  P.;  p.  170. 

16.  Robinson,  H.;  Loom  and  Spindle;  N.  Y.,  1898,  p.  19.  Abbott,  E.  ;  Women 
in  Industry;  X.  V.,  1)    Appleton  &  Co.,  1910,  p.   11<>. 

17.  Sumner,  11.  ;  History  of  Women  in  Industry  in  the  United  States;  Vol.  IX,  Com- 
missioner of  Labor's  Report,  Condition  of  Women  and  Child  Wage  Earners  in  the 
U.  S.,  1910,  p.  99. 

18.  Robinson,  H. ;  p.  99. 

19.  Sumner,  H. ;  p.  80. 

20.  Niles  Register,  May  10,  1S27. 

21.  Standard  Definition  of  Labor  Turnover  and  Methods  of  Computing  the  Percentage 
of  Labor  Turnover;    Ind.  Man.,  Sept.,  1918. 

22.  Dunlop  and  Denman;  p.  58. 

23.  Alexander,  M.  ;  Hiring  an, I  Firing,  Its  Economic  Waste  and  How  to  Avoid  It; 
An.  Am.  Acad.,  May,  1916. 

24.  Proc.  Nat.  Safety  Council,  1917,  p.  89. 

25.  The  Survey,  lei,.  16,  1918,  p.  644. 

26.  Henderson,  C.  It.;  Citizens  in  Industry;  N.  Y.,  D.  Appleton  &  Co.,  1915, 
p.  xvii. 

27.  Gilman,  N.  P.;   App.  II. 

CHAPTERS    11    AND   III 

1.  Fisher ,  Boyd ;  Methods  of  Reducing  Labor  Turnover ;  An.  Am.  Acad.,  May,  1916 

2.  Bulletin,  Ohio  Industrial  Commission,  June  28,  1916. 

:i.   Willits,  Joseph  II.;   The  Labor  Turnover  and  the  Humanising  of  Industry;  An. 

A..,.      \ea.l..    Sept.,     1915. 

■1.     Kelly,  Hoy  W.  ;    Hiring  the  Work<r:    The  Engineering  Magazine  Co.,  1918. 

:;:;7 


338  THE   HUMAN   FACTOR   IN   INDUSTRY 

5.  Feiss,  Richard ;   Personal  Relationship  as  a  Basis  of  Scientific  Management ;  An. 
Am.  Acad.,  May,  1915. 

6.  Reilly,  P.  J.;    The  Work  of  the  Employment  Department  of  the  Dennison  Manu- 
facturing Company;    An.  Am    Acad.,  May,  1916. 

7.  Banning,  K. ;    More  Work  and  Fewer  Mistakes;   System,  Oct.,  1913. 

8.  Marquis,  D.  S. ;   Reducing  the  Labor  Turnover;   Pa.  Dep't  Labor  and  Ind.  Bui., 
Feb.,  1917. 

9.  Fisher,  Boyd;  How  to  Reduce  Labor  Turnover;  U.  S.  Bur.  Lab.  Stat.  Bui., 
No.  227,  April,  1917. 

10.  Blackford,   Katherine,  and  Newcomb,  Arthur;     The  Job,  the  Man,  the  Boss; 
Doubleday,  Page  &  Co.,  1916,  p.  43. 

11.  Willits,    Joseph    H. ;     Development    of   Employment    Managers'    Associations; 
Monthly  R.,  Sept.,  1917. 

12.  Nat.  Ass'n  Corp.  Schools ;    Report  of  Committee  on  Vocational  Guidance, 
June  1,  1916. 

13.  Ind.  Man.;   April,  1917,  p.  124. 

14.  Leiserson,  William;    Public  Employment  Offices  in  Theory  and  Practice;    Am. 
Labor  Legis.  R.,  May,  1914. 

15.  Nat.  Ass'n  Corp.  Schools;    Report,  1915. 

16.  Bundy,  G. ;    Work  of  the  Employment  Department  of  the  Ford  Motor  Company; 
U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  196,  Jan.,  1916. 

17.  Am.  Labor  Legis.  R.,  June,  1917,  Chap.  IX. 

18.  Gardner,  H.  L. ;    The  Selection  Problem  of  Cheney  Brothers;    U.  S.  Bur.  Lab- 
Stat.  Bui.,  No.  227,  April,  1917. 

19.  Rules  for  Employes;   Curtis  Publishing  Company. 

20.  Andrews,  J.  B. ;  A  National  System  of  Labor  Exchanges  in  its  Relation  to  Indus- 
trial Efficiency;   An.  Am.  Acad.,  Sept.,  1915. 

21.  Huey,  K. ;    Problems  Arising  and  Methods   Used  in  Interviewing  and  Selecting 
Employes;   An.  Am.  Acad.,  May,  1916. 

22.  Bloomfield,  M. ;    Employment  Problems;    Ind.  Man.,  Aug.,  1917. 

23.  Keir,  John  S. ;    The  Establishment  of  Permanent  Contracts  with  the  Sources  of 
Labor  Supply;  An.  Am.  Acad.,  May,  1916. 

24.  Manuscript,  confidential  report  shown  to  the  writers. 

25.  Monthly  R.,  Sept.,  1917. 

26.  Andrews,  J.  B. ;    .4  Practical  Program  for  the  Prevention  of  Unemployment  in 
America;   Am.  Ass'n  Lab.  Legis.,  1915. 

27.  Muhlhauser,  Hilda ;   Public  Employment  Bureaus  and  their  Relation  to  Managers 
of  Employment  in  Industry;    An.  Am.  Acad.,  May,  1916. 

28.  Hubbell,  N.  D. ;    Written  Standard  Job  Specifications;   Ind.,  Man.,  Dec,  1917. 

29.  U.  S.  Ship.  Bd.  Em.  Fleet  Corp. ;    Aids  to  Employment  Managers  and  Inter- 
viewers on  Shipyard  Occupations ;   special  bulletin,  Phil.,  1918. 

30.  Burke,  R.  J.  ;  Written  Specifications  for  Hiring;  An.  Am.  Acad.,  May,  1916. 

31.  Farnum,  A.  G. ;    The  Ideal  Industry  from  the  Standpoint  of  Health  and  Safety; 
Proc.  Nat.  Safety  Council,  N.  Y.,  1917. 

32.  Gannon,  V.  J.;    Using  the  Man  Past  4o ;   Factory,  March,  1918. 

33.  Cadbury,  E. ;    Experiments  in  Industrial  Organization;    London,   Longmans, 
Green  &  Co.,  1912,  p.  4. 

34.  Clothier,  Robert  C. ;    The  Employment  Work  of  the  Curtis  Publishing  Company; 
An.  Am.  Acad.,  May,  1916. 

35.  Schneider,   H. ;    Selecting   Young  Men  for  Particular  Jobs;    Reprint,  meeting 
High  School  Teachers'  Ass'n,  Feb.  15,  1913. 

36.  Scott,  W.   Dill;     Vocational  Selection  at  the  Carnegie  Institute  of  Technology; 
U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  227,  also  confidential  manuscript. 

37.  Economic  Psychological  Association  ;    leaflet. 

38.  Proud,  Dorothea  E. ;   Welfare  Work;  London,  G.  Bell  &  Sons,  Ltd.,  1916,  p.  83. 

39.  Rossy,  C.  S. ;    Mental  Examinations  for  Employes;    Ind.  Man.,  Dec,  1917. 

40.  Whipple,  G.  M. ;    The  Use  of  Mental  Tests  in  Vocational  Guidance;   An.  Am. 
Acad.,  May,  1916. 

41.  Grehis,  M.  D. ;    Employment  Problems  and  How  the  John  B.  Stetson  Company 
Meets  Them;  An.  Am.  Acad.,  May,  1916. 


LIST  OF  REFERENCES  339 

42.  'Metropolitan  Life  Insurance  Company ;    Report  of  Welfare  Division,  1917. 

43.  Am.  Ass'n  Ind.  Phys.  and  Surgeons,  Rep't,  1916,  p.  28. 

44.  Rike,  Fred  H. ;  The  Need  for  and  the  Value  of  Physical  Examination  of  Employes 
as  Illustrated  in  the  Work  of  the  Rike-Kumler  Company;   An.  Am.  Acad.,  May,  1916. 

45.  Fisk,  E.  L. ;  Periodic  Physical  Examinations  of  Employes;  Address  to  the 
National  Association  of  Manufacturers,  May  26,  1915. 

46.  McMurtrie,  Douglas  C. ;  Placement  of  the  Crippled  and  Handicapped  by  the 
I'rniisi/lnuini  State  Bureau  uj  Employment ,  \m  J.  Care  Oi  Cripples,  Vol.  IV,  No  2 
Mr.  McMurtrie  has  compiled  a  complete  bibliography  of  foreign  and  domestic  literature 
referring  to  the  employment  of  the  war  cripple,  published  in  Bulletin  No.  5  of  the 
Federal  Board  for  Vocational  Education,  Washington,  Feb.,  1918. 

47.  Mod.  Hosp.,  March,  1915. 

48.  Reports,  Committee  on  the  Care  of  the  Jewish  Tuberculous,  N.  Y.,  Nov.,  1916. 

49.  Circulars  3  and  4;  Working  Conditions  Service;  U.  S.  Dep't  of  Labor,  Feb. 
17,  1919. 

50.  Lateness;  Industrial  Counselors,  Inc.,  2  E.  23rd  St.,  N.  Y.,  1918. 

51.  Rules  Governing  Home  Office  Clerical  Employes;  Metropolitan  Life  Ins.  Co., 
1919. 

52.  Final  Rep't;    Commission  on  Industrial  Relations;    1915,  Vol.  I,  ed.  1,  p.  166. 

53.  Fisher,  Boyd;  Determining  the  Cost  of  the  Turnover  of  Labor;  U.  S.  Bur.  Lab. 
Stat.  Bui.,  No.  227,  April,  1917. 

54.  Alexander,  M. ;  Hiring  and  Firing,  Its  Economic  Waste  and  How  to  Avoid  It; 
An.  Am.  Acad.,  May,  1916. 

55.  Confidential  report. 

56.  Hackett,  J.  D. ;  Standardization  of  the  Causes  of  Leaving  Job;  Ind.  Man., 
March,  1918. 

57.  Gould,  E.  C. ;    Reducing  Labor  Turnover ;    100%,  April,  1918. 

58.  Fish,  E.  H. ;  Figuring  and  Analyzing  the  Labor  Turnover;  U.  S.  Bur.  Lab. 
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59.  U.  S.  Ship.  Bd.  Em.  Fleet  Corp. ;  Handbook  on  Employment  Management 
Series,  Bulletins  Nos.  1  and  2,  Phil.,  1918. 

60.  Hubbell,  N.  D. ;  The  Organization  and  Scope  of  the  Employment  Department; 
U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  227,  Oct.,  1917. 

CHAPTER    IV 

1.  Clayton,  C.  T. ;    Training  that  Promotes  Production;    Ind.  Man.,  April,  1919, 
p.  311-313. 

2.  Kerschcnsteiner,  G. ;    The  Trade  Continuation  Schools  of  Munich;    Bui.   Nat. 
Soc.  of  Voc.  Ed.,  No.  14,  July,  1911. 

3.  Barlow,  M.;    Th\    Education    let,  1918;    London,  Nat.  Soc.  Depository,  1918. 

4.  Junes,   K.       'I'h,    A,  I  mi  mstration  of  Industrial  Enterprise;    London,    Longmans, 
Green  &  Co.,  1917. 

5.  Schneider,  II.  ;    Selecting  Men  for  Jobs ;   Ind.  Man.,  June,  1916. 

6.  Schneider,  H. ;   Partial  Time  Trade  Schools ;   An.   im.  load.,  Jan.,  1009,  p.  52. 

7.  Schneider,    II.;     Education   fur   Industrial    Workers;    School   Efficiency   Series, 
N.  Y.,  World  Book  Co.,  1915. 

8.  Interviews  with  coordinator  <>f  Washington  Irving  High  School,  April,  L918 

9.  Outline  of  the  Plan  fur  the  Education  oj  Apprentices,  National  Cash  Register 
Company,  Oct.  4,  I'M  1. 

10.  Prosser,  C.  ;  The  New  Apprenticeship  as  a  Factor  in  Reducing  Labor  Turnover; 
Proc.  Employmenl  M'g're  Conf.  fj.  8.  Bur.  Lab.  Btat.  Bui.,  No.  196,  May,  1916. 

11.  I ndustrial  Education :    Am.  Fed.  of  Labor,  Wash.,  D.  C,  l'.HO. 

12.  ShorUtmit  Courses  for   Wage  Earners;    0.  S.   Bur.   Lab.  Stat.   Bui.,   No 
April,  1915. 

13.  Glynn,  F. ;  War  Emergency  Education  in  a  Wisconsin  Motor  Plant;  American 
Industries,  Jan.,  1918. 

11.  Smith,  1{.  C. ;  Training  tin-  Immigrant  in  Industry;  Proc.  Employment  M'g'rs 
Conf.  U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  196,  May,  1919. 


340  THE   HUMAN   FACTOR   IN   INDUSTRY 

15.  Bui.  U.  S.  Steel  Corp.,  No.  7,  Dec,  1918. 

16.  Cross,  C.  W. ;  The  Apprentice  System  of  the  New  York  Central  Lines;  An. 
Am.  Acad.,  Jan.,  1909. 

17.  Alexander,  M. ;  The  Apprentice  System  of  the  General  Electric  Company  at 
West  Lynn,  Mass.;    An.  Am.  Acad.,  Jan.,  1909. 

18.  Nat.  Ass'n  Corp.  Schools,  1914,  p.  362. 

19.  Weller,  J.  H. ;  A  Description  of  the  Educational  Work  Carried  on  by  the  Packard 
Motor  Car  Co.;   Nat.  Ass'n  Corp.  Schools,  June,  1914,  p.  342-358. 

20.  Nat.  Ass'n  Corp.  Schools,  1916,  p.  167-168. 

21.  Fuld,  L.  F. ;  Service  Instruction  of  American  Corporations;  Bui.  Bur.  Educ, 
No.  34,  1916. 

22.  Nat.  Ass'n  Corp.  Schools,  1914,  p.  337,  338,  362. 

23.  Carpenter,  C.  W. ;    How  We  Trained  5000  Women;   Ind.  Man.,   May,  1918. 

24.  Factory,  May,  1919,  p.  1010-1016. 

25.  Stanbrough,  D.  G. ;    Packard  Training  Schools  for  Employes;   Ind.  Man.,  Nov., 

1918,  p.  378-382. 

26.  Johnson,   J.   F. ;   Possibilities  in   Training   Factory  Help;    Ind.    Man.,   Sept., 

1919,  p.  224. 

27.  MacNary,  E.  E. ;  Industrial  Training  in  Shipbuilding ;  Bui.  Nat.  Soc.  of  Voc. 
Ed.,  No.  27,  Feb.,  1918. 

28.  Rep't  Section  on  Industrial  Training  for  the  War  Emergency,  Council  of  Nat. 
Defense,  May  15,  1918. 

29.  Williams,  A. ;  The  Instruction  of  New  Employes  in  Methods  of  Service;  An. 
Am.  Acad.,  May,  1916. 

30.  Reilly,  P.  J. ;  The  Work  of  the  Employment  Department  of  the  Dennison  Manu- 
facturing Company;  An.  Am.  Acad.,  May,  1916. 

31.  Rep't  on  Sales  Methods  of  Burroughs  Adding  Machine  Company  of  Detroit, 
n.  d. 

32.  Gilson,  M. ;  Instruction  in  Garment-making  in  the  Clothcraft  Shops;  Bui. 
Nat.  Soc.  of  Voc.  Ed.,  No.  27,  Feb.,  1918. 

33.  Sawyer,  Wm.  A.;    Installing  Employment  Methods;    Ind.  Man.,  Jan.,  1919. 

34.  Factory,  Feb.,  1919,  p.  274. 

35.  The  New  York  Herald,  European  Edition,  Paris,  April  24,  1918.  The  Weekly 
Dispatch,  May  19,  1918.  The  Finger  Industry  News,  pub.  by  the  Double  Duty 
Finger  Guild,  Aug.  1,  1918.     Mod.  Hosp.,  Jan.,  1918. 

36.  Reprinted  from  The  Ford  Owner,  Jan.,  1919. 

37.  Opportunity.  —  Pamphlet  published  by  Western  Electric  Co.,  n.  d. 

38.  Nat.  Ass'n  Corp.  Schools,  1916,  p.  403. 

39.  Proc.  of  First  Annual  Con.  of  Nat.  Ass'n  of  Employment  M'g'rs,  1919,  p. 
33-36. 

40.  Stanbrough,  D.  G. ;  Training  Factory  Executives;  Ind.  Man.,  March,  1919, 
p.  175-176. 

41.  Kelly,  R.  W. ;   Training  Minor  Executives  in  a  Shoe  Factory;   Ind.  Man.,  Oct., 

1918,  p.  316-319. 

42.  Nat.  Ass'n  Corp.  Schools,  1915,  p.  704. 

43.  Gilbreth,  F.  B.  and  L.  M. ;  The  Three  Position  Plan  of  Promotion ;  An.  Am. 
Acad.,  May,  1916. 

44.  Educational  Activities  in  the  National  City  Bank  of  New  York,  1917-1918. 

45.  Educational  Work  of  the  Ford  Motor  Company,  Dec,  1916. 

46.  Feiss,  R. ;  Personal  Relationship  as  a  Basis  for  Scientific  Management;  An. 
Am.  Acad.,  May,  1916. 

47.  Paull,   C.   H. ;    Development  of  Americanization  Project;    Ind.   Man.,   March, 

1919,  p.  213-217. 

48.  U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  202,  p.  28. 

49.  Factory,  Sept.,  1918,  p.  447. 

50.  Proc.  Nat.  Safety  Council,  1915,  p.  525. 

51.  Welfare  Work  of  the  National  Cash  Register  Company. 

52.  The  John  Wanamaker  Commercial  Institute,  1915. 

53.  Cadbury,  E. ;  Experiments  in  Industrial  Organization;  London,  Longmans, 
Green  &  Co.,  1912. 


LIST   OF   REFERENCES  341 

54.  Rep't  of  International  Garment  Workers'  Union,  Am.  Fed.  of  Lab.,  1919. 

55.  National  Cash  Register  News,  Oct.,  1916. 

56.  Busser,  S.  E. ;    Santa  Fe  Reading  Rooms,  n.  d. 

57.  Bui.  Am.  Iron  and  Steel  Institute,  June,  1916. 

58.  Nat.  Ass'n  Corp.  Schools,  June,  1914,  p.  255. 

59.  Leiserson,  Wm.  M. ;  Plant  Organ;  Circular  U.  S.  Bur.  Lab.  Stat.,  No.  5, 
April  28,  1919. 

60.  Employes'  Publication;  Proc.  Nat.  Safety  Council,  1918,  p.  408-430. 

61.  Kimball,  H.  W. ;  Fostering  Plant  Spirit  through  Plant  Paper ;  Ind.  Man.,  March, 
1919,  p.  245. 

62.  Heller,  A.  C. ;    The  Mirror;  Charles  William  Stores. 

63.  Factory,  Feb.,  1919,  p.  266. 

64.  Factory,  March,  1919,  p.  482,  484,  and  486. 

65.  Factory,  April,  1919,  p.  712. 

66.  Factory,  Jan.,  1919,  p.  102. 

CHAPTER   V 

1.  U.  S.  Bur.  Lab.  Stat.  Monthly  Review,  sqq.,  Sept.,  1918,  p.  188. 

2.  Fitch,  J.;    Where  Time  is  Money;    The  Survey,  Feb.  2,  1918. 

3.  U.  S.  Bur.  Lab.  Stat.  Bui.,  Nos.  144,  166,  186,  213,  244;  Am.  Lab.  Leg.  Rev., 
Vol.  VIII,  No.  3,  Sept.,  1918. 

4.  Lee,  F.  S. ;  Chap,  on  Fatigue  and  Occupation,  Diseases  of  Occupation  and  Voca- 
tional Hygiene;  ed.  by  G.  M.  Kober  and  W.  C.  Hanson,  Phil.,  Blakiston,  1916. 

5.  U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  221,  April,  1917. 

6.  Frankfurter,  F.,  and  Goldmark,  J.;  The  Case  for  the  Shorter  Work  Day;  Vol. 
I,  Rep't  Nat.  Consumers'  League,  1915,  p.  204. 

7.  Florence,  P.  S. ;  Question  of  Fatigue  from  the  Economic  Standpoint;  Rep't 
British  Ass'n  for  Advancement  of  Science,  Manchester,  1915. 

8.  Frankfurter,  F.,  and  Goldmark,  J. ;    Vol.  I,  p.  564. 

9.  Health  of  Munition  Workers,  Rep't  Memo.  No.  18,  1917. 

10.  Goldmark,  J. ;  Fatigue  and  Efficiency ;  Vol.  I,  Russell  Sage  Foundation,  1912, 
p.  159.  j 

11.  Williams,  F.  M. ;  An  Actual  Account  of  What  We  have  Done  to  Reduce  Our 
Labor  Turnover;   U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  227,  Oct.,  1917. 

12.  Fitch,  J.;    Hours  and  Output;   The  Survey,  May  12,  1917. 

13.  Fisher,  I.;  Report  on  National  Vitality;  Committee  of  One  Hundred  on 
National  Health,  Gov't  Printing  Office,  Bui.  No.  30,  1909,  p.  46. 

14.  Hours  of  Work  Related  to  Output  and  Health  of  Workers  —  Metal  Manufacturing 
Industries;  Research  Rep't  No.  18,  Nat.  fed.  Conf.  Bd.,  July,  1919,  the  fifth  of  a 
series  of  studies  on  hours  and  output  in  the  cotton,  boot  and  shoe,  wool,  and 
silk  industries. 

15.  Frankfurter,  P.,  and  Goldm»   .<,  J.;    Vol.  I,  p.  163. 

111.  Florence,  P.  S.,  Use  of  Fact/  y  Statistics  in  the  Investigation  of  Industrial  Fatigue; 
Col.  Univ.  Studies  in  Pol.  Sci.,  Jr.  V.,  1918. 

17.  Commons,  J.  R.,  and  A  idrewa,  J.  B, ;  Principle*  of  Labor  Legislation;  N.  Y., 
Harper  &  Bros.,  1916,  Chap.  '  . 

18.  U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  230,  July,  1917. 

19.  Brandeis,  L.  D.,  and  Ooldinark,  J. ;  The  Case  against  Night  Work  for  Women; 
Nat.  Consumers'  League,  11/  vised  to  March  V,  191&  p.  96. 

20.  Ibid, ;  p.  99. 

21.  Kent,  A.  F.  S. ; /  d  Interim  Report  (on  an  investigation  of  industrial  fatigue 
by  physiological   mcthu  is),   British  Home  Office,   London,  Aug.,  1916. 

22.  Leverhtllme,  .' .ord  ;  The  Six  Hour  Day  and  Other  Industrial  Questions;  N.  Y  , 
Henry  Holt  &  Co.,  |6l9. 

23.  Lescohier,  F  .  D.  ;  Industrial  Employers'  Liability  and  Workmen's 
Compensation  in  Minnesota;    Am.  Stat.  Ass'n  Q.,  June,  1911,  p.  654. 

^4.    Rubinow,  T.  M. ;   Social  Insurance;   N.  Y.,  Henry  Holt  &  Co.,  1918. 


342  THE    HUMAN    FACTOR   IN    INDUSTRY 

25.  Mo.  R.,  Oct.,  1917,  p.  155. 

26.  Taylor,  F.  W. ;  The  Principles  of  Scientific  Management;  N.  Y.,  Harper  & 
Bros.,  1911,  p.  57. 

27.  Rest  Periods  for  Industrial  Workers;  Nat.  Ind.  Conf.  Bd.  Rep't,  No.  13,  Jan., 
1919. 

28.  Cadbury,  E. ;  Experiments  in  Industrial  Organization;  London,  Longmans, 
Green  &  Co.,  1912. 

29.  Fitch,  J. ;    Making  the  Job  Worth  While;  The  Survey,  April  27,  1918. 

30.  Welfare  Work  of  the  Metropolitan  Life  Insurance  Company ;   Rep't,  1917. 

31.  Sanger,  S. ;  The  Limitation  of  Hours  from  the  International  Point  of  View; 
Nat.  Conf.  on  the  Prevention  of  Destitution,  Westminster,  1912,  P.  S.  King  &  Son, 
p.  456. 

32.  U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  223,  April,  1917,  p.  59. 

CHAPTER   VI 

1.  Proc.  Nat.  Safety  Council,  6th  annual  Congress,  part  1,  p.  9. 

2.  Pa.  Dep't  Lab.  and  Ind.  Bui.,  June,  1917. 

3.  Young,  Arthur;    Practical  Aspects  of  the  Safety  Movement;    Ind.  Man.,  Oct., 
1917. 

4.  Eggan,  M.  J.;  Safety  Work  that  Reduces  Cost  of  Accidents;  The  Dodge  Idea, 
July,  1916. 

5.  California  Safety  News,  Feb.,  1917. 

6.  Contests  for  Accident  Prevention;   Survey,  April  19,  1919,  p.  120-121. 

7.  U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  210,  p.  103. 

8.  Pa.  Dep't  Lab.  and  Ind.  Bui.,  Feb.,  1917,  p.  139. 

9.  100%,  Dec,  1916,  p.  84. 

10.  U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  210,  p.  137. 

11.  A  Brief  Account  of  the  Educational  Work  of  the  Ford  Motor  Company,  1916. 

12.  U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  230,  July,  1917,  p.  146-147. 

13.  Rochester,  A.,  and  Taylor,  F. ;  What  the  Government  Says  about  Cotton  Mills; 
pamphlet  243,  Child  Labor  Committee. 

14.  Correspondence  with  the  Company. 

15.  Hayhurst,  E.  R. ;  A  Survey  of  Industrial  Health  Hazards  and  Occupational 
Diseases;   Rep't  Ohio  State  Board  of  Health,  Feb.,  1915,  p.  51,  404. 

16.  Frankfurter  and  Goldmark;  The  Case  for  the  Shorter  Work  Day;  1915,  Vol. 
I,  p.  257. 

17.  Jones,  E.  D. ;    The  Administration  of  Industrial  Enterprises. 

18.  Price,  G.  M. ;    The  Modern  Factory;  p.  76,  232,  271,  1914. 

19.  U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  20  7.  March,  1917. 

20.  Commons,  J.  R.,  and  Andrews,  J.  B  ■    Principles  of  Labor  Legislation,  p.  321. 

21.  Recommended  Standard  Practice  on  Ml  "n.al  Supervision  in  Detroit  Plants;  An. • 
Am.  Acad.,  May,  1917. 

22.  Health  of  Munition  Workers:    Rep't,  Mt  10.  No.  14,  1916. 

23.  Darlington,  Thomas;   Illness  in  Industry  —  ..  's  Cost  and  Prevention,  1914. 

24.  Hubbard,  Charles  L. ;    Factory  Water  Supply;   Factory,  May,  1919. 

25.  Roach,  John;    Hygienic  and  Sanitary  Equipment;    Ind.   Man.,  Oct.,  1917. 

26.  Parsons,  Floyd  W. ;    Health  and  Industry;    Sat.  Eve.  Post,  June  7,  1919. 

27.  Shop  Lighting;   Rep't  Ind.  Com.  of  Wis.,  1914. 

28.  Schereschewsky,  J.  W. ;  The  Health  of  Garment  Workers;  Pub.  Health  Bui., 
No.  71,  N.«Y.,  1915,  Treasury  Dep't. 

29.  W'nslow,  C.  E.  A.;    Proof  that  it  Pays  to  Ventilate;    Factory,  Feb.,  1917. 

30.  Great  Britain.  —  Health  of  Munition  Workers  Con.-nittee;  Memo.  No.  9, 
p.  66. 

31.  Harris,  Louis  I.,  and  Schwartz,  Nelle;  The  Cost  of  Cled  i  Clothes  in  Terms  of 
Health;   Dep't  of  Health,  N.  Y.,  and  N.  Y.  Consumers'  League,  191S,  p.  23. 

32.  U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  221,  April,  1917,  p.  101. 

33.  Fire  Prevention  and  Safety  First  Methods;    100%,  Oct.  and  Nov.,  1918. 


LIST  OF  REFERENCES  343 

CHAPTER   VII 

1.  Mock,  H.  E. ;    Industrial  Medicine  and  Surgery;    J.  Ind.  Hyg.,  May,  1919. 

2.  Thompson,  W.  G. ;    Occupational  Diseases;  D.  Appleton  &  Co.,  1914,  p.  10. 

3.  Report,  Committee  on  Vocational  Guidance;  Nat.  Ass'n  Corp.  Schools,  1916, 
Dr.  H.  C.  Metcalf,  Ch'n. 

4.  Ainsworth,  F.  K. ;  The  Southern  Pacific  Company's  Railroad  Hospital;  Mod. 
Hosp.,  May,  1915;  Reibenack,  Max;  Railway  Provident  Institutions  in  English- 
Speaking  Countries;   Pennsylvania  R.  R.  Co.,  1915. 

5.  100%,  Feb.,  1916. 

6.  Bui.  Chic.  Tub.  Inst.,  June  1,  1913. 

7.  Andrews,  J.  B. ;  Physical  Examination  of  Employes;  Amer.  Public  Health 
Ass'n  Journal,  Aug.,  1916. 

8.  Sachs,  T.  B. ;  The  Campaign  in  Chicago  for  Medical  Examination  of  Employes; 
Transactions,  10th  Annual  Meeting,  1914,  Nat.  Ass'n  for  the  Study  and  Prev.  of  Tub., 
p.  37. 

9.  Physical  Examination  of  Wage  Earners  in  Ohio  in  1014;  Bur.  Ind.  Commission 
of  Ohio. 

10.  Rep't  Amer.  Ass'n  Ind.  Phys.  and  Surgeons,  1918. 

11.  Service,  Cost  and  Results  of  the  Work  of  the  Department  of  Health,  1913-1917, 
Dep't  of  Health,  N.  Y. 

12.  Health  and  Sanitation ;   Norton  &  Co.,  Dep't  of  Health. 

13.  100%,  May,  1916. 

14.  Parsons,  Floyd  W. ;    Health  and  Industry;    Sat.  Eve.  Post,  June  7,  1919. 

15.  Confidential  report,  Medical  Department,  Met.  Life  Ins.  Co.,  1917. 

16.  Glasgow,  Maude;  The  Periodic  Medical  Examination  as  Applied  to  Employes 
of  the  Department  of  Health  ;    Mo.  Bui.  Dep't  Health,  N.  Y.,  Jan.,  1916. 

17.  Monthly  R.,  Feb.,  1919,  p.  217. 

18.  U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  230,  p.  150. 

19.  Standards  for  Physical  Examination;  Municipal  Civil  Service  Commission  of 
New  York,  1916. 

20.  Trautschold,  R. ;    Cost  of  Industrial  Health  Insurance;    Ind.  Man.,  Jan.,  1918. 

21.  Mock,  H.  E. ;  An  Efficient  System  of  Medical  Examination  of  Employes;  Nat. 
Ass'n  for  the  Study  and  Prev.  of  Tub.,  10th  Annual  Meeting,  1914. 

22.  Britton,  J.  A. ;  The  Relation  of  Medical  Examination  of  Employes  to  the  Hygiene 
of  the  Working  Place  and  the  Efficiency  of  the  Working  Force;  Nat.  Ass'n  for  the  Study 
and  Prev.  of  Tub.,  10th  Annual  Meeting,  1914. 

23.  Mock,  II.  E.  ;  Industrial  Medicine  and  Surgery,  The  New  Specialty;  J.  Amer. 
Med.  Ass'n,  Jan.  6,  1917, 

21.  Sladc,  C.  B. ;  Periodic  Physical  Examinations  in  their  Relation  to  the  Practi- 
tioner;  Med.  Rev.  of  Rev.,  June,  l'.il.">. 

25.  New  York  Times,  June  2,  1918. 

26.  Hutton,  J.  E. ;  Welfare  and  Horsing;  A  Practical  Record  of  War-Time  Manage- 
ment. 

27.  Monthly  R.,  Sept.,  1917,  p.  66. 

28.  100%,  Jan.,  1916. 

29.  Mullen,  T.  II.  ;  U ' e.comonended  Standard  Practice  on  Medical  Supervision  in  De- 
troit Plants;   An.  Am.  Acad.,  May,  1917. 

80.  Elliott,  R.  W.  ;  Valtu  of  the  Di  ntal  Clinic  from  the  Standpoint  of  the  Industrial 
Surgeon;    Rep't  Nat.  Safety  Council,   1918,  p.  276. 

31.  Frankel,  Leo  K. ;  Drmtal  Work  in  the,  Industries;  Proc.  Nat.  Safety  Couneil, 
1916. 

32.  Welfare  Work,  Mot.  Life  Ina.  Co.,  1917. 

33.  Dodge  Idea,  Jan.,  1916. 

34.  Report,  Provost  Marshal  Ceneral  to  the  Secretary  of  War  on  the  First  Draft 
under  the  Selective  Sorvice,  1918. 

35.  Schereschewsky,  J.  W. ;  The  Health  of  Garment  Workers;  Pub.  Health  Bui., 
No.  71,  U.  S.  Pub.  health  Serv..  1915. 

36.  Gardner,  H.  L. ;  The  Employment  Department,  Its  Function  and  Scope;  U.  S. 
-Jw.  Lab.  Stat.  Bui.,  No.  202,  Sc,  L916. 


344  THE   HUMAN   FACTOR   IN   INDUSTRY 

37.  Feiss,  It. ;    Personal  Relationship  as  the  Basis  of  Scientific  Management;    An. 
Am.  Acad.,  May,  1916. 

38.  Confidential  Report,  Medical  Department,  Met.  Life  Ins.  Co.,  1918. 

39.  Welfare  Work  for  Employes  in  Industrial  Establishments  in  the  United  States; 
U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  250,  Feb.,  1919. 

40.  Industrial  Bulletin,  Colorado  Fuel  and  Iron  Co.,  Sept.  25,  1918. 

41.  Met.  Life  Ins.   Co.,   Tuberculosis  Sanatorium  for  Employes;    Mt.   McGregor, 
Saratoga  County,  N.  Y.,  Pamphlet  Met.  Life  Ins.  Co. 

42.  The  Survey,  Oct.  29,  1910. 

43.  Dublin,  L.  I. ;   Causes  of  Death  by  Occupation;   U.  S.  Bur.  Lab.  Stat.  Bui.,  No. 
207,  March,  1917. 

44.  King,  H.   M. ;    Restoration  of  Working  Efficiency  after  Sanatorium  Treatment ; 
Report  10th  Annual  Meeting  of  Nat.  Ass'n  Study  on  Prev.  of  Tub.,  1912. 

45.  Mock,  H.  E. ;    Medical  Work  and  Sanitation,  July,  1911. 

46.  Industrial  Health  Hazards  and  Occupational  Diseases  in  Ohio;  Ohio  State  Board 
of  Health,  p.  402,  Feb.,  1915. 

47.  Hanson,  Wm.  C. ;    Attitude  of  Massachusetts  Manufacturers  toward  the  Health 
of  their  Employes;   Bui.  of  the  Bur.  of  Lab.,  Mass.,  No.  96. 

48.  Vogeler,  W.  J. ;   Employment  of  Patients  Leaving  Sanatoria ;   Rep't  10th  Annual 
Meeting,  Nat.  Ass'n  for  Study  and  Prev.  of  Tub.,  1912. 

49.  Cooke,  M.  L. ;    Scientific  Management  and   Unemployment;    An.  Am.  Acad., 
Sept.,  1915. 

50.  Selby,  CD.;    A  Proposed  Bureau  of  Industrial  Safety,  Sanitation  and  Hygiene 
to  be  Maintained  on  the  Mutual  Plan;   Am.  J.  of  Pub.  Health,  Nov.,  1916. 

51.  Fisher,  Boyd;    Methods  of  Reducing  the  Labor  Turnover;  An.  Am.  Acad.,  May, 
1916. 

52.  Pub.  Health  Bui.,  No.  99,  U.  S.  Pub.  Health  Serv.,  1919,  p.  30. 

53.  Proc.  Nat.  Safety  Council,  p.  196  sqq.,  1919. 

54.  U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  230,  July,  1917,  p.  51. 

55.  Proceedings  of  the  Conference  on  Social   Insurance,   U.   S.   Bur.   Lab.   Stat. 
Bui.,  No.  212,  p.  458,  June,  1917. 

56.  Strunsky,  Hyman  ;    A  Workmen's  Sanatorium  for  Workers ;   The  Survey,  May 
29,  1915,  Vol.  XXXIV,  p.  196. 

57.  Joint  Board  of  Sanitary  Control,   6th  and   7th   Annual   Reports,   and  other 
data  secured  from  Dr.  Price. 

58.  Elliott,  R.  W. ;  How  We  Keep  Our  Men  Well;  Factory,  Feb.,  1919. 

59.  Austin,  M.  A.;    Medical  Inspection  of  Factory  Employes;    J.  Ind.  Hygiene, 
June,  1919. 

CHAPTER   VIII 

1.  Official  Bulletin,  July  22,  1918. 

2.  Feiss,  R.  A.;   Personal  Relationship  as  a  Basis  of  Scientific  Management;  An. 
Am.  Acad.,  May,  1916. 

3.  Fisher,   Prof.   Irving;    Adjusting   Wages  to  the  Cost  of  Living;    Monthly  R., 
Nov.,  1918. 

4.  Drury,  H.  B. ;   Scientific  Management;  London,  Longmans,  Green  &  Co.,  1918. 

5.  A  Comparative  Study  of  Wage  and  Bonus  Systen.s;   Emerson  Company;   Gantt, 
H.  L. ;    Work  Wages  and  Profits;    New  York,  The  Engineering  Magazine  Co.,  1916. 

6.  Marot,  H. ;     The  Creative  Impulse  in  Industry;    New  York,  Dutton  &  Co., 
1918,  p.  42. 

7.  Cadbury,  E. ;    Experiments  in* Industrial  Organization;    London,  Longmans, 
Green  &  Co',  1912. 

8.  The  Welfare  Work  of  the  Metropolitan   Life  Insurance   Company  for   Its   Em- 
ployes, 1917. 

9.  Williams,  J.  M. ;    An  Actual  Account  of  What  We  have  Done  to  Reduce  Our 
Labor  Turnover;    An.  Am.  Acad.,  May,  1917. 

10.  Proc.  of  the  Nat.  Safety  Council,  1916,  p.  97. 

1 1 .  Gehris,  M.  D. ;    Employment  Problems  and  How  the  John  B.  Stetson  Company 
Meets  Them;   An.  Am.  Acad.,  May,  1916.  \ 


LIST  OF   REFERENCES  345 

12.  Shipman,  L.  H. ;    Inciting  the  Worker's  Interest;    100%,  Jan.,  1919. 

13.  Miller,  L.  A.;   Increasing  File  Clerks'  Efficiency  by  a  Bonus;   100%,  July,  Aug., 
1918. 

14.  Sterns,  W.  D. ;   Standardized  Occupations  and  Rates ;   Ind.  Man.,  May,  1918. 

15.  Maraton,   C.   A. ;     A   Bonus  which  Pays  the  Executive  for   Cutting  Expenses; 
100%,  April,  1918. 

16.  Hunger,   E.   A.;   Suggestions  from  Employes  Help  the  Company  Save  Money; 
An.  Am.  Acad.,  May,  1917. 

17.  Lee,  J.  R. ;    The  so-called  Profit  Shari?iy  System  of  the  Ford  Plant;  An.  Am. 
Acad.,  May,  1916. 

18.  Profit  Sharing  by  American  Employers;    New  York,   Nat.  Civic  Federation, 
1916. 

19.  Gilman,  N.  P. ;    A  Dividend  to  Labor;   Boston,  Houghton  Mifflin  Co.,  1899. 

20.  Burritt,  A.  W.,  and  others;   Profit  Sharing;   New  York,  Harper  &  Bros.,  1918, 
p.  148  sqq. 

21.  New  York  Times,  March  24,  1918. 

22.  Morgan,  S.  A. ;    These  Plans  Saved  $56,000  a  Year;  System,  Nov.,  1917. 

23.  Ind.  Man.,  June,  1918,  p.  500. 

24.  Adams,  T.  S.,  and  Sumner,  H.  L. ;    Labor  Problems;    Macmillan  Co.,  1909, 
p.  184. 

25.  Strikes  in  American  Industry  in  War  Times;    Nat.  Ind.  Conf.  Bd.,  Research 
Report  No.  3,  March,  1918. 

26.  Bond,  Albert  S. ;   Why  We  Are  All  Managers  in  Our  Plant;  Factory,  Feb.,r1919. 

CHAPTER   IX 

1.  Ranney,  G.  A.;   International  Harvester  Company;   Chicago,  111.,  Mod.  Hosp., 
August,  1916,  p.  148. 

2.  Health  of  Munition  Workers  Committee,  Rep't,  Memo.  No.  3,  1915. 

3.  Proude,  D. ;    Welfare  Work;   London,  G.  Bell  &  Sons,  Ltd.,  1916,  p.  193. 

4.  Crum,  F.  S. ;   Restaurant  Facilities  for  Shipyard  Workers ;  U.  S.  Shipping  Board 
Emergency  Fleet  Corp.,  Industrial  Relations  Division,  Phil.,  1918. 

5.  Rossy,  C.  S. ;    The  Factory  Employes'  Restaurant;    Ind.  Man.,  March,  1918, 
p.  237. 

6.  Equipment  for  Factory  Service  Department;    General  Service  Dep't  National 
Lamp  Works,  General  Electric  Co.,  Cleveland,  O.,  1913. 

7.  Annual  Report,  Memo.,  Mutual  Service  Association,  1916-1917. 

8.  Jones,  E.   D. ;     The  Administration  of  Industrial  Enterprise;    London,  Long- 
mans, Green  &  Co.,  1917,  p.  303. 

9.  A  Thumbnail  Sketch  of  the  Filene  Cooperative  Association,  1913. 

10.  Welfare  Work  of  the  Metropolitan   Life   Insurance  Company;    Report,   1918. 

11.  Employes'  Handbook;    Winchester  Repeating  Arms  Company,  1916. 

12.  Cadbury,  E. ;    Experiments  in  Industrial  Organization;    London,   Longmans, 
Green  &  Co.,  1912,  p.  93. 

13.  Health  of  Munition  Workers  Committee,  Rep't,  Memo.  No.  11,  1916,  p.  4. 

14.  The  Preparation  of  Food  for  Factory  Employes;  General  Service  Dep't,  National 
Lamp  Works,  General  Electric  Co.,  Cleveland,  Ohio,  1915. 

15.  City  Restaurant  as  a  Diet  Guide;    New  York  Times  Magazine,  Sunday,  July 
18,  1915. 

16.  Privileges  of  the  Employes  of  the  Miller  <fc  Lock  Co.,  n.  d. 

17.  Leverhulme,  Lord;    The  Six  Hour  Day  and  Other  Industrial  Questions;  Henry 
Holt  &  Co.,  1919,  p.  is  I. 

18.  Welfare  Work  for  Employs  in   Industrial  Establishments  in  the  United  Slates; 
U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  250,  Feb.,  1919. 

19.  Weber,  J.  J. ;    Welfare  Work  Dcnnison  Manufacturing  Company ;   Mod.  Hosp., 
Dec.,  1918,  p.  488-189. 

20.  Walker,  A.  K.  ;    Lookina  In  yon, I  tin    l>o,,r  ,,f  W elf  an    Service  in  the  Department 
Store;    Mod.  Hosp.,  Aug.,  1910,  p.  119-122. 

21.  Employes'  Welfare  Work;    U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  123,  May,  1913 


346  THE   HUMAN   FACTOR   IN   INDUSTRY 

22.  Duncan,    J.    P.;     Chicago    Telephone   Company,    Chicago,   III.;     Mod.    Hosp. 
Aug.,  1916,  p.  134-135. 

23.  Comas,  R.  T. ;  Welfare  Work  of  Cincinnati  and  Suburban  Telephone  Co.; 
Mod.  Hosp.,  Jan.,  1917,  p.  75  and  76. 

24.  Lovejoy,  F.  W. ;  Eastman  Kodak  Co.,  Rochester,  N.  Y. ;  Mod.  Hosp.,  Oct., 
1916,  p.  349. 

25.  Latta,  S.  W. ;  Rest  Rooms  for  Railroad  Men;  Bui.  Nat.  Civ.  Fed.,  No.  V., 
N.  Y.,  1906. 

26.  Busser,  S.  E. ;    The  Santa  Fe  Reading  Room  System,  n.  d. 

27.  Equipment  of  Factory  Service  Department ;  General  Service  Dep't  National  Lamp 
Works,  General  Electric  Co.,  Cleveland,  Ohio,  1913. 

28.  Brown  &  Bigelow,  St.  Paul,  Minn.;    Mod.  Hosp.,  Aug.,  1916,  p.  159. 

29.  Emerson,  A.;    Behind  the  Scenes  in  a  Department  Store;    Outlook,   Feb.  24, 

1915,  p.  450-455. 

30.  Bintz,  E.  B. ;  Factory  as  a  Community  Center ;  Nat.  Safety  Council,  1918,  p.  573. 

31.  Crankshaw,  C.  W. ;  Prudential  Life  Insurance  Company,  Newark,  N.  J.; 
Mod.  Hosp.,  Aug.,  1916,  p.  144. 

32.  Parke  Davis  &  Co.,  Detroit,  Mich.;    Mod.  Hosp.,  Aug.,  1916,  p.  152. 

33.  Shuey,  E.  L. ;  Factory  People  and  Their  Employers;  N.  Y.,  Lentilhon  &  Co. 
1900,  p.  80  and  175. 

34.  Jackson,  J.;  Noon  Day  Club  for  Girls;  Proc.  Employment  M'g'rs  Conf., 
U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  227,  1917,  p.  171. 

35.  Elliott,  W. ;    How  We  Keep  Our  Men  Well;    Factory,  Feb.,  1919,  p.  247. 

36.  Meeting  of  Officers  of  Local  Councils,  Nat.  Safety  Council,  1918,  p.  143. 

37.  Pamphlets  published  by  Industrial  Department,  Y.  M.  C.  A.,  N.  Y. ;  Ways 
and  Means;  Among  Industrial  Workers;  American  Workingmen;  The  College  Man's 
Opportunity. 

38.  Lee,  R.  E. ;  Industrial  Service  in  a  Tire  Factory;  Mod.  Hosp.,  May,  1917, 
p.  353. 

39.  Clough,  F.  E. ;  Welfare  Work  of  Homestake  Mining  Company,  Leadville,  South 
Dakota;   Mod.  Hosp.,  Jan.,  1917,  p.  74. 

40.  Jackson,  J. ;  Strawbridge  &  Clothier  Chorus ;  Proc.  of  Employment  M'g'rs, 
Conf.,  U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  227,  1917,  p.  170-171. 

41.  Gilson,  M.  B. ;  Service  Work  of  Clothcraft  Shops;  Proc.  of  Employment  M'g'rs, 
Conf.,  U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  227,  1917,  p.  150. 

42.  Welfare  Work  of  Kohler  Industries,  Feb.,  1917. 

43.  Wells,  F.  O. ;    An  Employes'  Engineering  Club;   Ind.  Man.,  June,  1919,  p.  443. 

44.  Taplin,  H.  B. ;  Employes  at  Macy's  New  York  Conduct  Welfare  Work;  Mod. 
Hosp.,  Oct.,  1916,  p.  258. 

45.  Welfare  Work  of  the  Metropolitan  Life  Insurance  Company,  1917. 

46.  Walsh,  W.  H. ;    Welfare  and  Efficiency  at  the  Same  Time;   Mod.  Hosp.,  Aug., 

1916,  p.  118. 

47.  Cary,  H. ;   Keeping  Employes  Happy ;   Mod.  Hosp.,  March,  1917,  p.  232. 

48.  Lord,  C.  B. ;    Athletics  for  the  Working  Force;    Ind.  Man.,  Oct.,  1917,  p.  44. 

49.  From  Boston  Transcript,  Oct.  22,  1913,  Coolidge,  L.  A. ;  United  Shoe  Machi- 
nery Company. 

50.  Factory,  July,  1918,  p.  98. 

51.  Pierce,  P.  S. ;  Employers'  Welfare  Work  in  Iowa;  Bui.  State  University  of 
Iowa,  No.  13,  Dec.  15,  1915. 

52.  Interview  with  F.  Kohn,  Vice  President  International  Garment  Workers' 
Union,  July  18,  1919. 

53.  Rep't  of  International  Garment  Workers'  Union,  Am.  Fed.  Lab.,  1919. 

CHAPTER   X 

1.  Cadbury,  G.,  Jr.;    Town  Planning;   London,  Longmans,  Green  &  Co.,  1915, 
p.  123. 

2.  Allen.  L.  H. ;    The  Problem  of  Industrial  Housing;    Ind.  Man.,  Dec,  1917,  p. 
396;  404. 


LIST  OF  REFERENCES  347 

3.  Homes  for  Workmen;   Southern  Pine  Association,  New  Orleans,  1919,  p.  10. 

4.  Kennedy,  D.   R. ;    Housing  by  Employers  in  the  United  States;    Proceedings, 
Sixth  Nat.  Conf.  on  Housing,  Chicago,  1917,  p.  249-253. 

5.  Groben,   W.   E. ;     Modern  Industrial  Housing;    Pub.   by  Ballinger  &  Perrot, 
Architects  and  Engineers,  Phil,  and  N.  Y.,  1918.     Foreword  and  p.  9. 

6.  Fisher,   Boyd;     Good  Housing  as  a  Reducer  of  Labor   Turnover;     Proc.   Nat. 
Housing  Ass'n,  1918,  p.  150. 

7.  War  Housing  Problems  in  America;   Nat.  Housing  Ass'n,  Feb.,  1918,  p.  108. 

8.  Housing  Betterment;   Quarterly  Pub.  of  Nat.  Housing  Ass'n,  June,  1919,  p.  39. 

9.  Bruere,  R.  W. ;    Following  the  Trail  of  the  I.  W.  If.  ,•   New  York  Evening  Post, 
1918. 

10.  Resolution  Adopted  at  Meeting  of  New  York  Board  of  Health,  Oct.  5,  1918. 

11.  Rep't  of  the  U.  S.  Housing  Corporation;   U.  S.  Bur.  Indus.  Housing  and  Trans- 
portation, Dec,  1918,  p.  13-15. 

12.  Girls'  Welfare,  Nat.  Catholic  War  Council  Committee  on  Special  War  Activities, 
Aug.,  1919. 

13.  Wood,  E.  E. ;    The  Housing  of  the  Unskilled  Wage  Earner;    Macmillan,  1919, 
p.  117-120,  233-234. 

14.  Adams,  T.  S.,  Sumner,  H.  L. ;    Labor  Problems;   Macmillan,  1909,  p.  392. 

15.  Nolen,  J. ;    Industrial  Housing ;   Cambridge,  Mass.,  1918,  p.  15. 

16.  Taylor,  G.  R. ;   Satellite  Cities;   D.  Appleton  &  Co.,  N.  Y.  and  London,  1915, 
p.  6,  35,  99-100,  237. 

17.  Lee,   R.   E. ;     How  Akron  Grappled  with  its  Housing  Shortage;    Proceedings 
Sixth  Nat.  Conf.  on  Housing,  Oct.,  1917,  p.  60-66. 

18.  Housing  Progress  of  the  Year;    Rep't  of  Sec't'y  of  Nat.  Housing  Ass'n,  Oct., 
1917,  p.  399,  409. 

19.  Magnusson,  L.  F. ;    Housing  by  Employers  in  the  United  Stales;    Proceedings 
Sixth  Nat.  Conf.  on  Housing,  Chicago,  1917,  p.  106-129. 

20.  Bui.  Bur.  Lab.,  1904,  Part  II,  p.  1198. 

21.  Monthly  Bui.  Am.  Iron  and  Steel  Institute,  No.  8,  Aug.,  1916,  p.  223. 

22.  Bui.  United  States  Steel  Corporation,  No.  7,  Dec,  1918. 

23.  Culpin,  E.  G. ;    Garden  City  Principles;   Nat.  Conf.  Prevention  of  Destitution, 
1912,  P.  S.  King  &  Son,  p.  292. 

24.  Russel,  T. ;    Welfare  Projects  of  the  Cadburys  at  Bournville;   Dodge  Idea,  Nov., 
1916. 

25.  Take  your  Choice,  Home  or  Hovel;  The  Connecticut  Mills  Co.,  Danielson,  Conn., 
n.  d. 

26.  Apel,  F. ;    Housing  by  Employers  in  the  United  States;   Proceedings  Sixth  Nat. 
Conf.  on  Housing,  Chicago,  1917,  p.  254-257. 

27.  Frankel,  Lee  K. ;    How  Insurance  Companies  Can  Help  Housing;    First  Town 
Planning  Conf.,  Boston,  Nov.,  1913. 

28.  May,  C.  C. ;    Indian  Hill,  an  IjiAustrial  Village  for  the  Norton  Co.,  Worcester, 
Mass.;    Nat.  Housing  Ass'n  Pub.,  No.  40,  July,  11*17. 

29.  Veiller,  L. ;    Industrial  Housing  Developments  in  America;   Nat.  Housing 
Pub.,  No.  47,  May,  1918. 

30.  Veiller,  I,.;   Industrial  Housing  Developments  in  America;   Nat.  Housing  Ass'n 
Pub.,  No.  46,  Mar.,  1918. 

31.  Monthly  Lab.  R.,  July,  1919,  p.  147-148. 

32.  Hamlin,    W.    A.;     Low   Cost   Cottage   Construction   in    America;     Cambridge, 
Mass.,  1917,  p.  28. 

33.  Nolen,  J.;    A  Good  Home  for  Every  Wage  Earner;    Address  U.  S.   League  of 
Local  B'ld'g  and  Loan  Ass'n,  July,  L917. 

34.  Whitakcr,  C.  II.,  Ackerman,  F.  L.,  Childs,  K.  8.,  Wood,  E.  E. ;    The  Housing 
Problem  in  War  and  Peace;    J'n'l  Am.  Institute  of  Architects,  1918. 

35.  Furniss,  S. ;    Chap,  on  The  Workingwornan'*  House;    Women  and  the  Labor 
Party,  Ed.  by  Dr.  M.  Phillips,  Huebech,  X.  Y  ,  1918. 

36.  Housing  Workers  in  u  Powder  Plant;  Survey,  Apr.  26,  1919. 

37.  Monthly  R.,  Dee.,  L917,  p    -'17. 

38.  Mo.  Bui.  Am.  Iron  and  Steel  Institute;   X".  <',,  June,  1916. 

39.  Proud,  E.  D. ;    Welfare  Work;    Loudon,  G.  Bell  «Sc  Sons,  Ltd.,  1916. 


348  THE   HUMAN   FACTOR   IN   INDUSTRY 

40.  Goodyear  Heights ;  The  Goodyear  Tire  and  Rubber  Company,  Akron,  Ohio,  1913. 

41.  Chandler,  W.    L. ;     Financial  Aids  for    Employes;     Ind.    Man.,    Oct.,   1917, 
p.  36^3. 

42.  Commons,  J.  R.,  Andrews,  J.   B. ;    Principles  of  Labor  Legislation;    Harper 
&  Bros.,  1916,  p.  55. 

43.  Warbasse,  J.  P. ;    Cooperative  Buying  among  Employes,  n.  d. 

44.  A  Survey  of  Typical  Cooperative  Stores  in  the  United  States;    U.  S.    Dep't   of 
Agric.  Bui.,  No.  394,  p.  26-29. 

45.  Employers'  Welfare  Work;   U.  S.  Bur.  Lab.  Stat.  Bui.,  No.   123,  May,  1913. 

46.  Mod.  Hosp.,  Oct.,  1916,  p.  166. 

47.  Wright,  F.  S. ;     The  Visiting  Nurse  in  Industrial  Welfare    Work;    The  Pub. 
Health  Nurse  Quar.,  Jan.,  1917,  p.  73-79. 

48.  Mod.  Hosp.,  Oct.,  1916,  p.  349. 

49.  Mod.  Hosp.,  Aug.,  1916,  p.  162. 

50.  Industrial  Welfare  Work  in  One  of  the  Zones;   The  Pub.  Health  Nurse  Quar., 
Jan.,  1917,  p.  73-79. 

51.  Forty-First  Rep't  of  Bur.  of  Indus.  Stat.,  Pa.,  1913-1914. 

52.  Factory,  July,  1918,  p.  98. 

53.  Mod.  Hosp.,  Nov.,  1916,  p.  433. 

54.  Mo.  Bui.  Am.  Iron  and  Steel  Institute,  No.  2,  Feb.,  1914. 

55.  Shaw,  S.  L. ;    The  Makings  for   Revolution;    New   Republic,   Aug.    13,    1919, 
p.  52-54. 

56.  Mo.  Bui.  Am.  Iron  and  Steel  Institute,  No.  7,  July,  1914. 

CHAPTER   XI 

1.  Rubinow,  I.  M. ;    Social  Insurance;  Henry  Holt  &  Co.,  N.  Y.,  1913,  p.  115, 
225,  414,  419. 

2.  Clark,  L.  D. ;     Workmen's  Compensation  Legislation  of  the  United  States  and 
Foreign  Countries,  1917  and  1918;    U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  243,  1918,  p.  7-9. 

3.  Commons,  J.  R. ;   Industrial  Goodwill;   McGraw-Hill,  1919. 

4.  Sickness   Insurance   or   Sickness   Prevention;     Research    Study    No.    6,    May, 

1918,  Nat.  Indus.  Conf.  Board. 

5.  California  Social  Insurance  Commission  Rep't;    1917,  p.   15.     Commission  on 
Public  Welfare  in  State  of  Connecticut;    Rep't,  1919,  p.  50. 

6.  Ohio  Health  arid  Old  Age  Insurance  Commission  Rep't;    Columbus,  Feb.  1919, 
p.  2. 

7.  Workmen's  Insurance  and  Benefit  Funds  in  the  United  States;    Twenty-third 
Annual  Rep't  U.  S.  Commissioner  of  Labor,  1908,  p.  18,  219,  419,  426. 

8.  Sydenstricker,  E. ;   Existing  Agencies  for  Health  Insurance  in  the  United  States ; 
U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  212,  1917,  p.  430-475. 

9.  Chandler,   W.    L. ;    Employes'   Benefit  Associations;    Ind.   Man.,   Jan.,   Feb., 
Mar.,  Apr.,  June,  July,  1918. 

10.  Ranney,  G.  A. ;  Employes'  Benefit  Association  of  the  International  Harvester  Co. ; 
U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  212,  1917,  p.  482-490. 

11.  Eaton,  J.   M. ;    Industrial   Welfare   Work  a  Factor  in   Modern  Management; 
Mod.  Hosp.,  Aug.,  1916,  p.  106. 

12.  Huyck,  F.  C. ;  Establishment  Funds  and  Universal  Health  Insurance;  Am.  Labor 
Leg.  R.,  Mar.,  1917,  p.  85-90. 

13.  Rice,  E.  E. ;    Group  Insurance  for  the  Industrial  Worker;    Ind.  Man.,  Mar., 

1919,  p.  234-236. 

14.  Feiss,   R.    A. ;     Personal   Relationship  as  a   Basis   of  Scientific   Management ; 
An.  Am.  Acad.,  May,  1916,  p.  27-56. 

15.  Henderson,  C.  R. ;   Industrial  Insurance  in  the  United  States;   Univ.  of  Chicago 
Press,  1919,  p.  119. 

16.  Rules  Governing  Home  Office  Clerical  Employes;    Metropolitan  Life  Insurance 
Co.,  1918. 

17.  Frankel,    Lee    K. ;     Some   Fundamental   Considerations   in   Health   Insurance; 
U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  212,  1917,  p.  59S-605. 


LIST  OF   REFERENCES  349 

18.  Day,  W.  F. ;  Group  Insurance;  U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  212,  1917,  p. 
421-429. 

19.  Ins.  Year  Book,  Spectator  Co.,  1919. 

20.  Consolidated  Chart,  1919  Edition,  Pub.  Fraternal  Monitor. 

21.  Correspondence  of  the  Metropolitan  Life  Insurance  Co.,  New  York. 

22.  Frankel,  Lee  K.,  Dawson,  M.  L. ;  Workingmen's  Insurance  in  Europe;  Russell 
Sage  Foundation,  1910,  p.  9.  4 

23.  Tucker,  G.  D. ;  Physical  Examination  of  Employes  Engaged  in  the  Manufacture 
of  Portland  Cement;  Am.  J.  Pub.  Health,  June,  1915,  p.  570. 

24.  Harwood,  E.  R. ;  Methods  of  Insuring  Workmen's  Compensation ;  An.  Am. 
Acad.,  Mar.,  1917,  p.  253. 

25.  Squier,  L.  W. ;  Old  Age  Pensions;  Macmillan  Co.,  1912,  p.  16,  25,  64,  67,  105, 
259. 

26.  The  Problem  of  Pensions;   Bui.  Nat.  Civic  Fed.,  Jan.,  1916. 

27.  Plan  for  Employes'  Pensions,  Disability  Benefits,  and  Insurance;  American 
Tel.  and  Tel.  Co.,  Jan.,  1913. 

28.  Dawson,  M.  M. ;  Service  Pensions  and  Pension  Funds;  U.  S.  Bureau  Lab. 
Stat.  Bui.,  No.  212,  p.  730-741. 

29.  Brodsky,  R.  J. ;  Social  and  Fraternal  Insurance ;  Fraternal  Monitor,  Jan. 
1911,  p.  20-21. 

30.  Monthly  R. ;    Mar.,  1919,  p.  119. 

31.  Ham,  A.  H.,  Robinson,  L.  G. ;   A  Credit  Union  Primer;  July,  1918,  p.  13. 

32.  Company  Savings  and  Loan  Plans;   Bui.  Nat.  Ass'n  Corp.  Schools,  Nov.,  1917. 

33.  Chandler,  \V.  L. ;  Financial  Aids  for  Employes;  Ind.  Man.,  Oct.,  1917,  p. 
36-43. 

34.  Burritt,  A.  W.,  Dennison,  H.  S.,  Gay,  E.  F.,  Heilman,  R.  E.,  Kendall,  H.  P.; 
Profit  Sharing,  Its  Principles  and  Practice;   Harper  &  Bros.,  1918. 

35.  Rochester  Herald,  Apr.  4,  1919,  Eastman  Kodak  Co.,  Letter  to  Employes; 
May  28,  1919. 

36.  Ham,  A.  H. ;    People's  Banks;   Russell  Sage  Foundation,  Aug.,  1916. 

37.  How  I  Freed  Our  Men  from  Loan  Sharks ;  by- the  Service  Manager  of  a  Michigan 
Manufacturing  Plant,  Factory,  Mar.,  1919,  p.  459— i61. 

CHAPTER   XII 

1.  Organizing  the  Employment  Department;  Handbook  on  Employment  Manage- 
ment, U.  S.  Shipping  Bd.  Emergency  Fleet  Corp. 

2.  Person,  II.  S. ;  U niversity  Schools  of  Business  and  the  Training  of  Employment 
Executives;   An.  Am.  Acad.,  May,  1916. 

3.  Selby,  C.  D. ;  Studies  of  the  Medical  and  Surgical  Care  of  Industrial  Workers; 
Bui.  Pub.  Health,  U.  S.  Pub.  Health  Service,  No.  99. 

4.  Leiserson,  W.  M. ;  Employment  Management,  Employe  Representation,  and 
Industrial  Democracy ;  Address  at  Nat.  Ass'n  Employment  M'g'rs,  May,  1919,  Printed 
by  U.  S.  Working  Conditions  Service. 

5.  U.  S.  Bur.  Lab.  Stat.  Bui.,  No.  221,  p.  551. 


KEY   TO   BIBLIOGRAPHY 

Am.  Ass'n  Ind.  Phys.  and  Surgeons.  — American  Association  of  Industrial  Physi- 
cians and  Surgeon  ' 

Am.  Ass'n  Lab.  Legis.  —  American  Association  for  Labor  Legislation. 

Am.  J.  Care  of  Cripples.  —  American  Journal  fur  tin-  Care  of  Cripples. 

Am.  .1.  Pub.  Health.       American  Journal  ol  Public  Health. 

Am.  Labor  Legis.  R.  —  American  Labor  Legislation  Review 

Am.  Stat.  Ass'n  Q.  —  American  Statistical  Association  Quarterly. 

An.  Am.  Acad.  —  Annals  of  the  Amerioan   taademj  oi   Political  and  Social  Science. 

Bui.  Chic.  Tub.  Inst.  —  Bulletin  of  the  Chicago  Tuberculosis  Institute. 

Bui.  Ind.  Commission  of  Ohio.  —  Bulletin  of  the  Industrial  Commission  of  Ohio. 


350  THE    HUMAN   FACTOR   IN    INDUSTRY 

Bui.  Pa.  Dept.  of  Lab.  and  Ind.  —  Bulletin  of  the  Pennsylvania  Department  of 
Labor  and  Industry. 

Col.  Univ.  Studies  in  Pol.  Sci.  —  Columbia  University  Studies  in  Political  Science. 

Con.  of  Nat.  Ass'n  of  Employment  M'g'rs.  —  Convention  of  the  National  Asso- 
ciation of  Employment  Managers. 

Health  of  Munition  Workers. — Health  of  Munition  Workers  Committee  (British), 
Ministry  of  Munitions. 

Ind.  Man.  —  Industrial  Management  Magazine. 

J.  Am.  Institute  of  Architects.  —  Journal  of  the  American  Institute  of  Architects. 

J.  Amer.  Med.  Ass'n.  —  Journal  of  the  American  Medical  Association. 

J.  Ind.  Hyg.  —  Journal  of  Industrial  Hygiene. 

Med.  Rev.  of  Rev.  —  Medical  Review  of  Reviews. 

Mod.  Hos.  —  Modern  Hospital  Magazine. 

Mo.  Bui.  Am.  Iron  &  Steel  Institute.  —  Monthly  Bulletin  of  the  American  Iron 
and  Steel  Institute. 

Mo.  Bui.  Dep't  Health  —  Monthly  Bulletin  of  the  Department  of  Health. 

Monthly  R.  —  Monthly  Review  of  the  United  States  Bureau  of  Labor  Statistics. 

Nat.  Ass'n  Corp.  Schools.  —  National  Association  of  Corporation  Schools. 

Nat.  Ass'n  Study  and  Prev.  of  Tub.  —  National  Association  for  the  Study  and 
Prevention  of  Tuberculosis. 

Nat.  Civic  Fed.  —  National  Civic  Federation. 

Nat.  Housing  Ass'n.  —  National  Housing  Association. 

Nat.  Ind.  Conf.  Bd.  —  National  Industrial  Conference  Board. 

Nat.  Soc.  of  Voc.  Ed.  —  National  Society  of  Vocational  Education. 

Pa.  Dep't  Labor  and  Ind.  Bui.  —  Monthly  Bulletin  of  the  Pennsylvania  Depart- 
ment of  Labor  and  Industry. 

Proc.  Nat.  Safety  Council.  —  Proceedings  of  the  National  Safety  Council. 

Pub.  Health  Bui.,  U.  S.  Pub.  Health  Serv.  —  Public  Health  Bulletin  of  the  United 
States  Health  Service. 

Pub.  Health  Nurs.  Quar.  —  Public  Health  Nursing  Quarterly. 

Rep't  of  Bur.  of  Indus.  Stat.  Pa.  —  Report  of  the  Bureau  of  Industry  and  Statis- 
tics of  Pennsylvania. 

Rep't  Ind.  Com.  of  Wis.  —  Report  of  the  Industrial  Commission  of  Wisconsin. 

U.  S.  Bur.  Lab.  Stat.  Bui.  —  Bulletin  of  the  United  States  Bureau  of  Labor  Statis- 
tics. 

U.  S.  Dep't  of  Agric.  Bui.  —  Bulletin  of  the  United  States  Department  of  Agri- 
culture. 

U.  S.  Ship.  Bd.  Em.  Fleet  Corp.  —  United  States  Shipping  Board  Emergency  Fleet 
Corporation. 

U.  S.  Steel  Corp.  —  United  States  Steel  Corporation. 

NOTE 

Since  the  writing  of  these  chapters,  the  following  important  publications  have 
appeared.     These  are  of  special  interest. 

Gearhart,  Edna  B. ;  Work  Shop  Committees ;  list  of  References  on  "  Special  Libraries," 
Oct.,  1919,  p.  203-208. 

Link,  Henry  C. ;  Employment  Psychology.     N.  Y.     Macmillan  Co. 

Mock,  Harry  E. ;  Industrial  Medicine  and  Surgery.     Phila.     Saunders. 

Polakov,  Walter  N. ;  Fatigue  and  Industrial  Efficiency ;  Industrial  Management, 
Dec,  1919,  pp.  448  flf. 

Ramsey,  Robert  E. ;  Effective  House  Organs.     N.  Y.    Appleton. 

Spaeth,  Reynold  A. ;  Prevention  of  Fatigue  in  Industry;  Industrial  Management, 
series  beginning  in  January,  1920. 

Warren,  Katherine;  Labor  Turnover;  list  of  References  on  "Special  Libraries," 
Oct.,  1919,  p.  189-203. 


INDEX 


Absences,  labor  loss  from,  65 ;  in- 
vestigations of,  66-67. 

Absenteeism  records,  deductions 
from,  192. 

Accident  insurance,  307-309. 

Accidents,  schedule  of,  a  measure  of 
fatigue,  115,  120-121;  slight  re- 
lation between  night  work  and, 
123-124;  schedule  of,  for  differenl 
days  of  week,  128 ;  daily  distribu- 
tion of,  129;  growth  of  movement 
for  prevention  of,  135-136:  possi- 
bility of  preventing,  136-137 ; 
physical  examinations  a  preventive 
of,  140 ;  wearing  of  uniforms  a 
preventive  measure,  152 ;  effi- 
ciency affected  by,  209 ;  money 
rewards  as  preventive  of,  210- 
211. 

Advertising,  as  a  method  of  securing 
applicants,  32-34. 

Age,  as  a  predisposing  factor  in  in- 
dustrial diseases,  144-145. 

Age  limit  for  employes,  extension  of, 
46. 

Akron,  industrial  housing  at,  267- 
268. 

Alexander,  M.,  cited,  187,  L89; 
data  collected  by,  192. 

Altman  &  Company,  rest  rooms  of, 
235 ;  gymnasium  maintained  by, 
241. 

American  Association  of  Industrial 
Physicians  and  Surgeons,  165. 

American  Bridge  Company,  Harden- 
ing prizes  of,  286. 

American  Industry,  magazine,  L3. 

Americanization  plans  for  employes, 
99-100 ;  the  safety  movement 
and,  141. 

American  Locomotive  Company, 
special  training  system  of,  94. 

American  Museum  of  Safety,  or- 
ganization of,  136. 


American  Pulley  Company,  instruc- 
tion of  new  employes  by,  91. 

American  Rolling  Mill,  reading  room 
for  foreign  workmen  at,  104. 

American  Steel  and  Wire  Company, 
special  training  given  selected 
salesmen  by,  94. 

American  Telephone  and  Telegraph 
Company,  rest  room  of,  235 ; 
pension  system  of,  314. 

American  Tobacco  Company,  ex- 
periment by,  in  selecting  sales- 
men, 54. 

American  Viscose  Company,  housing 
developed  at  Marcus  Hook  by, 
268,  273,  280. 

American  Woolen  Company,  rest 
rooms  of,  '_':!(>. 

Annuitv  system  of  old-age  insurance, 
311-312. 

Applicants,  methods  of  securing, 
for  jobs,  28  ff. ;  sources  of  recom- 
mendations, 30-32 ;  advertising 
for,  32  34;  scouting  system  for 
securing,  34-35;  use  of  psycho- 
logical tests  for,  o."»-58. 

Application  blanks,  use  of,  29-30; 
subjects  covered  on,  50-51;  value 
of,  in  way  of  permanency,  51-52; 
more  time  required  in  hiring  im- 
plied by,  52. 

Appraisers'  Office,  New  York,  credit 
union  in.  323. 

Apprenticeship  schools,  introduction 
of,  85  87;  railroad,  87;  coopera- 
tion i  if  public  schools  and,  87- 
88. 

Apprenticeship  system,  welfare  work 
connected  with,  <;  8;    breakdown 
of  old,   SO-81 ;    of   National  City 
Bank,  New  York.  97  98 
Arbeiter  Ring  Sanatorium,  195. 

Armstrong  Cork  Company,  dental 
work  for  emploj  Bfi  of,   1  7'.». 


351 


352 


INDEX 


Army,    scale    for    rating    ability    of 

officers  in,  54-55. 
Arrangement  of  employment  office, 

75. 
Artificial  illumination,  standards  of, 

154. 
Atchison,     Topeka    and    Santa    Fe 

R.    R.,    apprenticeship    school   of, 

87 ;    rest  and  recreation  rooms  of, 

237,  239. 
Athletic  associations,  employes',  253. 
Athletic  fields  for  employes,  248-249. 
Athletics  during  noon  hour,  241. 
Attendance,   correction  of  bad,   65- 

67;     efficiency    affected    by,    209; 

futility  of  fines  for  bad,  209-210; 

bonuses  for  good,  210. 
Auditoriums    for    use    of    employes, 

247. 
Australia,  old-age  pension  system  in, 

316. 
Avery    Company,    figures    from,    on 

cost  of  safety  and  medical  work, 

140 :     bulletins    on    oral    hygiene 

distributed  by,  179. 

Bands,  employes',  250-251. 

Barre,  Mass.,  Wool  Combing  Com- 
pany, houses  built  by,  276. 

Baseball  for  employes,  254-255. 

Basic  wage,  fixing  the,  201-203. 

Baths,  provision  for,  in  factories, 
148-149. 

Belgium,  insurance  of  mining  com- 
panies' employes  in,  11. 

Benefit  associations,  employes',  297 ; 
cooperation  of  employers  and 
employes  in,  299-300 ;  employers' 
judgment  of,  300 ;  insurance 
carried  by  members  of,  304 ;  old- 
age  benefits  paid  by,  312. 

Black  Company,  vacations  for  em- 
ployes of,  131. 

Blackford,  Katherine,  cited,  53. 

Blanzy  mining  company,  labor  ad- 
ministration by,  10. 

Blind,  vocational  training  of  the, 
91-92. 

"Blind"  and  "open"  advertising  for 
applicants,  32-33. 

Bloomfield,  Meyer,  analysis  of  jobs 
at  Bamberger  store  by,  41. 

Bonuses    to    employees,    to   remedy 


tardiness  and  absenteeism,  67 ; 
to  prevent  accidents,  210-211 ; 
for  yearly  service,  211. 

Bonus  methods  of  wages,  204-206. 

Books  for  employes,  104. 

Boston  Employment  Managers'  As- 
sociation, 27 ;  analysis  of  causes 
of  labor  turnover  suggested  by, 
72. 

Bournville  Works,  evening  classes 
at,  102 ;  vacations  for  employes 
of,  131 ;  fire  protection  at,  159— 
160,  161 ;  refreshments  served  at, 
231-232. 

Brick  construction  for  houses,  276. 

Bridgeport,  Conn.,  housing  problem 
at,  261,  268. 

Brooklyn  Rapid  Transit  Company, 
health  bulletins  issued  by,  199. 

Brown,  Bigelow  &  Co.,  noon  hour 
diversions  at,  241 ;  social  gather- 
ings of  employes  of,  254. 

Bruere,  Robert,  investigations  by, 
262. 

Building  and  loan  associations,  265- 
266 ;  an  important  contribution 
to  cooperative  credit  movement, 
318. 

Bureau  of  Working  Conditions  of 
U.  S.  Department  of  Labor,  14. 

Burham,  club  house  at,  291. 

Burke,  Mr.,  of  Detroit  Steel  Prod- 
ucts Company,  44. 

Burritt,  A.  S.,  217. 

Burroughs  Adding  Machine  Com- 
pany, salesmanship  school  of,  90- 
91 ;  meetings  of  executives  of,  104. 

Bush  Terminal  Company,  health 
work  of,  287. 

By-Product  Coke  Plant,  house  de- 
velopment plan  of,  280. 

Cadbury  Works,  profit-sharing 
scheme  at,  219. 

Cadillac  Motor  Company,  mutual 
benefit  association  of,  299. 

Cafeterias  for  employes,  228-229; 
equipment  of,  229;  cost  of  food, 
229-231 ;  menus  and  diet  in,  232- 
233. 

California  labor  camps,  living  con- 
ditions in,  262. 

Camps  for  employes,  249. 


INDEX 


353 


Casino  Technical  Night  School, 
East  Pittsburgh,  84-85. 

Chandler,  W.  L.,  study  of  mutual 
benefit  associations  by,  297-298. 

Charles  William  Stores,  plant  organ 
of,  107. 

Checks,  payment  of  wages  in,  220- 
221 ;  self-identifying,  221. 

Cheney  Brothers,  testing  of  em- 
ployes by,  56 ;  questionnaire  used 
by,  G3 ;  entrance  tests  as  a  basis 
for  promotion  at,  73 ;  care  of  em- 
ployes' eyes  at,  180. 

Chicago  Telephone  Company,  rest 
rooms  of,  236;  social  clubs  of, 
254. 

Chicago  Tuberculosis  Institute,  work 
of,  182-183,  186. 

Child  labor,  accident  list  increased 
by,  141. 

Childs,  R.  S.,  suggestion  by,  con- 
cerning land  costs,  277. 

China,  experiments  in  labor  ad- 
ministration in,  18-19. 

Choral  societies,  employes',  251. 

Cincinnati,  housing  of  factory 
workers  in,  266-267. 

Cincinnati,  University  of,  College  of 
Engineering  at,  77. 

Cincinnati  &  Suburban  Telephone 
Company,  rest  rooms  of,  236 ; 
vacation  home  for  employes  of, 
249. 

Cities,  movement  of  factories  away 
from,  267. 

Clark  Thread  Company,  health 
work  of,  287. 

Clayton,  C.  T.,  quoted,  77. 

Cleanliness,  prevention  of  disease 
by,  144;   various  benefits  of,  1  18. 

Cleveland  '  Cliffs  Iron  Company, 
community  club  house  of,  291. 

Cleveland  Foundry  Company,  plan 
followed  by,  with  plant  physician, 
189. 

Cleveland  Hardware  Company,  re- 
sults of  shorter  working  day  at, 
118. 

Clinics,  dental,  optical,  and  medical, 
177-181,  196-197. 

Club  houses  for  employes,  244-245; 
different  types  of,  245-246 ;  suc- 
cesses and  failures  of  plans  for, 
2a 


246-247 ;  open  to  the  community, 
290-291. 

Club  rooms  for  employes,  244-245. 

Clubs,  employes',  242,  250 ;  edu- 
cational, 252-253 ;   social,  254. 

Colleges,  courses  at,  in  labor  ad- 
ministration, 13  ;  securing  of  em- 
ployes from,  35. 

Colorado  Fuel  and  Iron  Company, 
health  education  conducted  by, 
199 ;  housing  development  by, 
269 ;  company  stores  of,  284 ; 
health  work  of,  287 ;  recreational 
activities  of,  290 ;  educational 
work  of,  291. 

Columbia  University,  courses  in 
employment  management  at,  13. 

Combination  Rubber  Company, 
blind  employes  of,  92. 

Committee,  the  workshop,  223. 

Commonwealth  Edison  Company, 
suggestion  system  used  by,  213. 

Community,  attitude  of  the,  toward 
labor  administration,  5 ;  the  em- 
ployer and  the,  260-292. 

Community  health  work,  286-288. 

Company  hospitals,  181-182. 

Company  houses,  274-275.  See 
Housing  conditions. 

Company  stores,  283-285. 

Concerts  and  entertainments  as 
noon  hour  diversions,  241-242. 

Concrete  construction  for  houses, 
276. 

Connecticut  Mills  Company,  housing 
policy  of,  271. 

Consolidated  Safety  Pin  Company, 
blind  employes  of,  92. 

Continental  Motor  Company,  cafe- 
teria at,  231  ;  management  of 
restaurant  at .  233. 

Continual  schools,  103. 

Cooperative  stores,  283;  educational 
value  of  ao-called,  285. 

I  "iiii'll  College  of  Engineering,  13. 

Correspondence  classes  for  training 
employes,  95  96. 

Cost  of  living,  basing  of  wages  on, 
202. 

( lountry  clubs  for  employes,  2 16. 

Crane  Company,  medical  depart- 
ment established  by,  161,  176; 
tuberculosis  sanatorium  of,  182. 


354 


INDEX 


Credit  unions,  321-323. 

Creusot  Steel  Works,  labor  adminis- 
tration in,  10. 

Crippled,  vocational  training  of  the, 
91-92. 

Crocker-Wheeler  Company,  employ- 
ment of  blind  persons  by,  61,  92. 

Cultural  classes  for  employes,  101- 
102. 

Curtis  Aeroplane  Corporation,  vesti- 
bule school  of,  89. 

Curtis  Publishing  Company,  results 
to,  of  introduction  of  centralized 
employment  bureau,  25  ;  principles 
observed  by,  in  engaging  appli- 
cants for  positions,  31 ;  securing 
of  employes  from  schools  by,  35 ; 
job  specification  blank  used  by, 
45 ;  method  used  by,  for  filing 
application  blanks,  52  ;  judgment 
of  applicant's  personality  by  em- 
ployment manager  of,  54  ;  use  of 
psychological  tests  by,  57 ;  rule 
books  for  employes  of,  64 ;  ap- 
prentice school  for  compositors 
maintained  by,  86  ;  rest  rooms  of, 
235 ;  summer  camp  for  younger 
employes  of,  249. 

Dancing  during  noon  hour,  240-241. 

Darlington,  Thomas,  quoted  on  com- 
pany stores,  284. 

Dartmouth  College,  Amos  Tuck 
School  at,  13. 

Dawson,  M.  M.,  cited,  315. 

Deere  and  Company,  cost  of  labor 
turnover  at,  70. 

Denmark,  old-age  pensions  in,  316. 

Dennison,  H.  S.,  217. 

Dennison  Manufacturing  Company, 
results  to,  of  introduction  of 
centralized  employment  bureau, 
25  ;  employes  secured  from  schools 
by,  35 ;  rule  books  for  employes 
of,  64  ;  reduction  of  labor  turnover 
at,  71 ;  transfers  of  employes  at, 
73 ;  training  class  for  new  em- 
ployes of,  90;  special  training  for 
foremen  of,  95 ;  promotion  plan 
used  by,  97 ;  health  bulletins  and 
pamphlets  issued  by,  199 ;  rest 
room  of,  234,  239. 

Dental    clinics,    in    industrial    con- 


cerns, 177-179 ;  of  women  gar- 
ment workers  in  New  York  City, 
197. 

Department  store  rest  rooms,  235. 

Detroit,  Visiting  Nurse  Association 
of,  190. 

Detroit  Executives'  Clubs,  study  of 
sanitary  standards  by,  146. 

Devine,  E.  T.,  cited  on  old-age  de- 
pendency, 310. 

Disability  pensions,  315. 

Disease,  occupational,  and  its  pre- 
vention, 142-146. 

Dispensary.     See  Medical  care. 

Dodge  Idea,  magazine,  13. 

Dodge  Manufacturing  Company,  em- 
ployes' cooperative  club  organized 
by,  283  ;  employes'  benefit  associa- 
tion of,  297-298;  Thrift  Club  of, 
320. 

Dold  Packing  Company,  profit- 
sharing  and  management-sharing 
at,  225. 

Dressing  rooms  for  employes,  151. 

Du  Pont  Powder  Company,  teach- 
ing of  English  to  employes  of,  100. 

Eastman  Kodak  Company,  health 
bulletins  issued  by,  199 ;  sug- 
gestion system  used  by,  213,  215; 
Kodak  Park  provided  by,  289; 
stock-purchase  plan  of,  321. 

Eclipse  Park,  houses  at,  274-275, 
277. 

Economy  of  shorter  working  day, 
116-122. 

Edison  Company,  forms  used  by, 
for  references,  62. 

Education,  need  for  industrial,  77 ; 
public  provision  for .  industrial. 
77-78 ;  plans  for  giving  a  general, 
98-110;  on  health  subjects,  197- 
199 ;  work  in,  for  the  community, 
291. 

Educational  activities  during  noon 
hour,  242-243. 

Educational  clubs,  252-253. 

Efficiency,  impairment  of,  by  fatigue, 
113;  relation  between  wages  and, 
203-204;  affected  by  attendance, 
accidents,  and  cooperation,  209 ; 
hope  of  promotion  as  a  factor  in, 
212. 


INDKX 


:;.V) 


Efficiency  engineer,  evolution  of  the, 
13. 

Efficiency  movement,  development 
of,  14-15. 

Emergency  equipment,  in  plants, 
173  ;   a  model,  175-176. 

Emergency  Fleet  Corporation,  course 
for  instructors  given  by,  89. 

Employes,  value  of  Labor  adminis- 
tration to,  5-6 ;  methods  of  hiring 
and  holding,  20  ff. ;  extension  of 
age  limits  of,  46 ;  elements  de- 
termining selection  of,  47-63 ; 
inducting  and  retaining,  63-76. 

Employment  agencies,  private,  36- 
37;  special,  37;  public,  37-38; 
the  United  States  Federal  Em- 
ployment Service,  3N-39. 

Employment  department,  arguments 
for  introduction  of,  22  ff . ;  argu- 
ments for  a  centralized,  24-28 ; 
methods  of  securing  applicants  by, 
28—40 ;  use  of  job  specification, 
40-40. 

Employment  management,  college 
courses  in,  13. 

Fmployment  manager,  rise  of  the, 
13 ;  use  of  foreman  as,  22  _'.'! ; 
securing  of  applicants  by,  28-40; 
qualifications  of,  329-330. 

Employment  Managers'  Association, 
14  ;   the  first,  27. 

Employment  office,  location  and 
arrangement  of,  75;  records  to 
be  included  in  dies  of,  70. 

Endicott  Johnson  Company,  swim- 
ming pool  l)ii ilt   by,  2.V.). 

Engineering  Magazine,  14  n. 

Engineers'  clubs,  252. 

Engis  Chemical  Works,  effeel  of 
shortening  working  hours  at,  122. 

England,  public  employment  agencies 
in,  3S  ;    new  Kducation  lull  in,  78. 

English,  classes  in,  for  employes,  99. 

Essen  Steel  Works,  welfare  institu- 
tions at,  1  1,  19. 

Europe,  early  experiments  in  welfare 
work  in,  8—11. 

Examinations,    psychological,    of    ap- 
plicants, 55  58;    physical,   .">'.»  62; 
benefil   of  periodic  physical,    166 
167  ;  purpose  and  value  of  medical, 
168-17:;. 


Executives,  special  training  courses 
for,  05-96  ;  bonuses  to,  for  savings 
effected,  213. 

lives,  care  of,  of  employes,  179-1M. 

I'm  lory,  manufact  urers'  magazine,  13. 

I  i  lory  specials  for  employes,  266— 
267. 

Fairfield,  industrial  village,  274. 

Farnum,  C.  C,  quoted,  45-46,  61. 

Fatigue,  meaning  of,  and  effect  on 
efficiency,  112-113;  causes  of, 
1 13  ;  causes  of,  inherent  in  machine 
production,  113-114;  means  of 
measuring,  114-116  ;  lack  of  varia- 
tion in,  during  year,  week,  or 
day,  127;  variation  in,  during  the 
work  period,  12s  ll".i;  rest  periods 
as  a  preventive  of,  129. 

Feiss,  R.,  quoted  on  employment 
management,  25. 

Field  &  Company,  recreation  room 
of,  235. 

Field  days  for  employes,  256  257. 

Filene  Sons  Company,  vacations  for 
employes  of,  131  ;  Cooperative 
Association  dining  room  at,  231; 
committee    management    for    <  !o- 

opcrative   Association   dining  room 

at,  232  233;    vacation  bureau  for 

employes  Of,  250;  musical  or- 
ganizations at.  251;  management 
of  recreational  work  of,  257  258; 
Savings  and  Loan  Bureau  of.  319. 

Files  for  employment  office,  records 
for  inclusion  in,  7(1. 

Financing  of  industrial  housing,  271- 
273. 

Fines,  futility  of,  as  reformative 
method,  209  210. 

Fire  protection,  need  for  and  meas- 
ures of,  159  162. 

I  irestone  Tire  and  Rubber  Company, 
club  house  of,  245;  housing  do- 
\  eloped  at    Akron  by,  -lis. 

I  'i    I   aid  kits  in  factories,  173. 

Fish,  I'..  II.,  72. 

Fisher,    Boyd,    quoted    on    cost    of 

labor  turnover,  ti(.»  7o. 
1'isk  Rubber  Company,  reduotion  of 

accidents  bj .  138. 

FitchbUTg      High     School,      part-time 

system  in,  81. 


356 


INDEX 


Follow-up  work  with  new  employes, 
64-65. 

Ford  Motor  Company,  introduction 
of  centralized  employment  bureau 
by,  and  results,  25-26 ;  use  of 
application  blank  by,  30 ;  cost  of 
labor  turnover  at,  70 ;  transfers  of 
employes  at,  73 ;  employment  of 
blind  and  crippled  by,  92 ;  results 
of  English  classes  at,  99 ;  work 
day  at,  127 ;  bonus-for-good- 
conduct  system  at,  215-216. 

Foreigners,  plans  for  education  of, 
by  industrial  plants,  98-101 ;  news- 
papers supplied  for,  104 ;  health 
education  for,  199. 

Foremen,  as  employment  managers, 
22  ;  complex  duties  of,  22 ;  argu- 
ments against  use  of,  as  employ- 
ment managers,  23 ;  relief  of,  by 
employment  department,  26 ; 
special  training  for,  95. 

Fore  River  Shipbuilding  Corporation, 
introduction  of  employment  de- 
partment by,  27-28 ;  scouting  and 
advertising  scheme  of,  34 ;  ap- 
prenticeship system  of,  in  coopera- 
tion with  public  schools,  87-88 ; 
promotion  plan  used  by,  97. 

France,  early  experiments  in  labor 
administration  in,  10 ;  societies  in, 
for  mutual  aid,  293 ;  old-age 
pensions  in,  316. 

Fraternal  societies,  sickness  insur- 
ance by,  297 ;  life  insurance  by, 
306 ;  old-age  benefits  paid  by, 
312. 

Free  lunches  for  employes,  231. 

Gain  sharing,  plan  for,  217. 

Gantt  task  and  bonus  system  of 
remuneration  of  employes,  206. 

Gardens  for  employes,  285-286. 

Garment  workers,  women,  in  New 
York  City,  cooperative  medical 
care  of,  195-197 ;  recreational  ac- 
tivities of,  258-259. 

Gary,  laissez-faire  policy  as  to 
housing  at,  270. 

Gay,  E.  F.,  217. 

General  Chemical  Company,  plant 
organ  of,  108. 

General  Electrical  Company,  secur- 


ing of  employes  from  schools  and 
colleges  by,  35  ;  group  insurance  of 
employes  of,  305. 

General  Railway  Signal  Company, 
job  specification  blank  used  by, 
41-42. 

German-American  Button  Company, 
45. 

Germany,  public  employment  agen- 
cies in,  38 ;  system  of  industrial 
education  in,  77-78;  industrial 
schools  of,  examples  of  continua- 
tion schools,  103. 

Gilbreth,  Frank,  "Fatigue  Study" 
by,  130. 

Gilbreth,  Mr.  and  Mrs.  Frank,  three 
positions  plan  of  promotion  put 
in  operation  by,  96. 

Gimbel  Brothers,  employes'  or- 
chestra of,  252. 

Girard,  J.  W.,  quoted,  263. 

Glee  clubs,  employes',  251. 

Good-conduct  bonuses,  215-216. 

Goodrich  Company,  plant  organ  of, 
110;  value  of  dental  clinic  shown 
by,  177. 

Goodyear  Tire  and  Rubber  Company, 
"Flying  Squadron"  of,  96;  meet- 
ings of  foremen  of,  104-105 ; 
plant  organ  of,  108 ;  housing  de- 
veloped at  Akron  by,  268  ;  stucco 
used  for  houses  by,  276-277 ; 
housing  restrictions  of,  281-282. 

Gorham  Manufacturing  Company, 
noon  hour  diversions  at,  241 ; 
athletic  field  of,  248. 

Gould,  E.  C,  cited  on  labor  turnover, 
71. 

Great  Britain,  societies  in,  for  mutual 
aid,  293 ;  old-age  pensions  in, 
316.     See  England. 

Greenfield  Tap  and  Die  Corporation, 
Employes'  Engineering  Club  of, 
105. 

Group  insurance,  300-301 ;  in  field 
of  life  insurance,  304-305,  306-307. 

Guilds,  welfare  work  in  medieval, 
6-8. 

Guild  system,  origin  of  term  "labor 
turnover"  in,  15  n. 

Gun  clubs,  employes',  255. 

Gwinn,  community  club  house  at, 
291. 


INDEX 


357 


Gymnasiums  for  employes,  241,  247- 
248 ;    classes  in,  256-257. 

Halpern,  Dr.  Julius,  195. 

Halsey's  premium  wage  system,  205. 

Ham,  A.  H.,  co-author  of  Credit 
Union  Primer,  323. 

Hamlin,  W.  A.,  quoted  on  construc- 
tion of  houses,  277. 

Handbooks  for  employes,  64. 

Hart,  Schaffner,  and  Marx  Company, 
experiments  of,  with  employment 
of  older  men,  46. 

Harvard  School  of  Business  Ad- 
ministration, 13. 

Hayes  Manufacturing  Company,  re- 
sults to,  of  centralized  employment 
bureau,  26. 

Hayhurst,  E.  R.,  on  occupational 
disease,  142. 

Health,  relation  between  short  hours 
and,  121. 

Health  education  for  employes,  100- 
101,  197-199. 

Health  work,  community,  286-288. 

Heilman,  R.  E.,  217. 

Heinz  Company,  entertainments  for 
employes  of,  254. 

Hercules  Powder  Company,  housing 
conditions  at,  279. 

Hershey,  Pa.,  community  work  at, 
289;  educational  activities  at, 
291. 

High  schools,  part-time  courses  in, 
81. 

Hollow  tile  construction  for  houses, 
276. 

Home  nursing  in  connection  with 
industrial  plants,  190. 

Homes  registration,  264-265. 

Homestake  Mining  Company,  recrea- 
tion building  of,  245 ;  swimming 
pool  of,  248. 

Homestead,  Pa.,  poor  conditions  in, 
290. 

Hospitals  for  employes,  181-182, 
286-L's7. 

Houses,  type  of  company,  274-275. 

Housing  conditions,  industrial,  260 
263;     urban,    for   employes,    283 
266 ;    where  industry   is  dominant 
factor    in    the    community,    267 
282. 


Housing  costs,  275-276. 

Hubbard,     Charles     L.,     article    on 

"Factory    Water    Supply,"    cn>d, 

150. 
Huyck  and  Sons,  employes'   benefit 

association  of,  300. 
Hyatt,  Dr.,  table  by,  178. 

Iceland,  old-age  pensions  in,  316. 

Illinois,  cooperative  stores  organized 
by  mine  workers  in,  2s4. 

Illinois  Steel  Company,  evening 
classes  maintained  by,  85 ;  ex- 
perience of,  in  reducing  accidents, 
137. 

Illness,  extent  of,  in  industry,  163 ; 
an  industrial  problem,  163-164. 

Indian  Hill,  industrial  village,  271, 
273. 

Industrial  accident  insurance,  307- 
309. 

Industrial  betterment,  2. 

Industrial  counselors,  13. 

Industrial  education.  See  Educa- 
tion. 

Industrial  fatigue.     See  Fatigue. 

Industrial  Management,  magazine,  13. 

Insurance,  for  wage  earners,  294- 
295;  sickness,  294,  296-303;  life, 
303-307;  old-age,  309-317. 

Intcrborough  Rapid  Transit  Com- 
pany, recreation  rooms  of,  237. 

International  Equipment  Harvester 
Company,  club  house  of,  2  !■">. 

International  Harvester  Company, 
reduction  of  accidents  by,  136- 
137 ;  medical  examinations  of 
employes  by,  172;  Mutual  Bene- 
fit Association  of,  299;  death 
benefit  plan  of,  305 ;  stock-pur- 
chase  plan  of,  320-321. 

International  Ladies'  Garment 
Workers'  Union,  educational  ac- 
tivities of,  102-103;  recreational 
activities  managed  by,  258.  See 
( raiment  workers. 

International  Typographical  Union, 
courses  given  by.  81. 

Interview,  the  preliminary,  in  selec- 
tion of  employe,  49;  the  second, 
53;  the  follow-up,  64-65;  with 
employee  who  are  leaving,  72. 

Invalidity  insurance,  315. 


358 


INDEX 


Jeffrey  Manufacturing  Company, 
factory  restaurant  at,  232. 

Job,  fitting  the  employe  to  the,  21- 
22. 

Job  selling  by  foremen,  23. 

Job  specification,  description  of,  40- 
45  ;  advantages  of,  45  ;  future  of, 
45-46. 

Joint  Board  of  Sanitary  Control,  the, 
195-196. 

Joseph  and  Feiss  Company,  method 
of  filing  application  blanks  by, 
51 ;  importance  of  applicant's 
personality  emphasized  by,  53 ; 
tests  of  employes  by,  56 ;  method 
of  instructing  new  operatives  used 
by,  91 ;  results  of  introduction  of 
40-hour  week  at,  119;  care  of  em- 
ployes' eyes  by,  180;  wages  and 
profits  at,  201-202 :  sickness  in- 
surance system  at,  300-301 ;  penny 
bank  system  at,  319-320. 

Kaul  Lumber  Company,  housing 
policy  of,  271. 

Kaulton,  industrial  village,  274. 

Kelly,  R.  W.,  on  methods  of  select- 
ing employes,'  48-49 ;  analysis  of 
effect  of  transfer  and  promotion 
by,  74. 

Kendall,  H.  P.,  217. 

Kent,  Professor,  laboratory  tests 
of  industrial  fatigue  by,  116,  124. 

Kimberly  Clark  Company,  dental 
work  among  employes  of,  179. 

Kitchen  equipment  of  lunch  rooms 
and  cafeterias,  229. 

Kodak  Park  Works,  suggestion  sys- 
tem at,  213-215. 

Kohler  Industries,  Progress  Club  of, 
252. 

Kops  Brothers,  self-supporting  cafe- 
teria at,  230. 

Korach  and  Company,  dances  ar- 
ranged by  union  in,  258. 

Krupp  Works,  welfare  institutions 
of,  11,  19. 

Labor  administration,  function  of, 
1  ff.  ;  organization  of  departments 
of,  2-3 ;  activities  with  which 
concerned,  3 ;  standards  for 
evaluating,   3-6 ;    origins  and  his- 


tory of,  6-12 ;  becomes  a  pro- 
fession, 12-13  ;  college  courses  in, 
13 ;  reasons  for  new  interest  in, 
14 ;  scope  of  problems  of,  18 ; 
an  international  experiment,  18- 
19 ;  organization  of  department 
of,  326  ff . ;  purpose  of,  326 ; 
need  for  experts  in,  328-329; 
qualifications  of  employment 
manager,  329-330;  the  industrial 
physician  and  medical  department, 
330-332 ;  department  organiza- 
tion, 332. 

Laboratory  tests  of  industrial  fatigue, 
116. 

Labor  loss  from  tardiness  and  ab- 
sence, 65. 

Labor  maintenance  service,  defined, 
3  n. 

Labor  turnover,  definitions  of,  15 ; 
extent  and  cost  of,  15—16 ;  causes 
of,  16-17  ;  economy  of  centralized 
employment  bureau  in  reducing, 
25-26 ;  definition  and  method  of 
computing,  agreed  on  by  National 
Employment  Managers'  Confer- 
ence, 68 ;  estimates  of  cost  of,  69— 
70;  analysis  and  reduction  of, 
70-71 ;  transfers  and  promotions 
for  reducing,  73-74 ;  close  re- 
lation between  accidents  and, 
141-142 ;  reducing,  by  adequate 
housing  conditions,  261. 

Labor  unions.     See  Trade  unions. 

Labor  unrest  caused  by  bad  housing 
conditions,  262-263. 

Lackawanna  Social  Center,  Boys' 
Club  of,  290. 

Lakeside  Press,  Chicago,  apprentice- 
ship school  of,  87. 

Land,  cost  of,  in  housing  develop- 
ments, 277-278. 

Larcom,  Lucy,  11. 

Leiserson,  W.  M.,  quoted,  333-334. 

Lever  Brothers,  educational  clubs  of, 
253. 

Leverhulme,  Lord,  six-hour  work 
day  favored  by,  127 ;  quoted  on 
rest  rooms,  234. 

Libraries  in  industrial  plants,  104. 

Liege  Mutual  Insurance  Fund,  11. 

Life  insurance  among  working  class, 
303-307.     See  Insurance. 


INDEX 


359 


Lighting  of  factories,  152-155. 

Lincoln  Motor  Company,  vestibule 
school  of,  89. 

Loan  plans  for  employes,  317-325. 

Loan  sharks,  credit  union  as  a  means 
of  rescuing  employes  from,  321- 
324. 

Lockers  for  employes,  151. 

Lorain,  Ohio,  poor  conditions  at, 
290. 

Lost  time  as  a  test  of  fatigue,  115— 
116. 

Lowe  Brothers  Company,  High 
Standard  Club  of,  247,  253. 

Lowell  factories,  early  activities  at, 
11-12. 

Lowell  Offering,  factory  operatives' 
magazine,  11. 

Ludlow  Manufacturing  Company, 
community  health  work  of,  286- 
287  ;   club  house  built  by,  289. 

Lunches,  length  of  period  for,  240. 

Lunch  rooms  for  employes,  227 ; 
different  types  of,  227-228 ;  equip- 
ment of,  229 ;  cost  of  food  in, 
229-231 ;  menus  and  diet  in,  232- 
233 ;  system  of  payment  for 
meals  at,  233. 

McElwain  Company,  training-classes 
for  minor  executives  of,  96. 

Machine  production,  fatigue  poisons 
caused  by,  113-114. 

Macy  and  Company,  rest  room  of, 
235 ;  summer  home  for  employes 
of,  249-250;  educational  club  of, 
253  ;    athletic  club  of,  253-254. 

Magazines,  for  manufacturers,  13- 
14 ;   for  employes,  104. 

Maison  Lcclaire,  labor  administra- 
tion by,  10;  profit-sharing  at  the, 
224. 

Management-sharing,  profit-sharing 
and,  224-225. 

Manchuria  Railway  Company,  wel- 
fare service  of,  is  1'.). 

Manufacturers' associations,  1  I. 

Massachusetts,  state  insurance 
scheme  in,  311-312;  state  regu- 
lation of  credit  unions  in,  .522. 

Medical  care  of  workers,  develop- 
ment of.  163  199. 

Medical    clinic,    of    women    garment 


workers  in  New  York  City,   196- 
197;    cost  of,  197. 

Medical  department  of  industrial 
plant,  173   177,  :i:;n-332. 

Medical  equipment  of  plant,  173-177. 

Medical  examinations  of  employes, 
L68   173. 

Medical  records,  191-192. 

Medical  staffs,  187-190. 

Medieval  industry,  welfare  work  in, 
6-8. 

Mentality,  placement  of  low,  58. 

Metropolitan  Life  Insurance  Com- 
pany, bonuses  for  good  time- 
keeping at,  67 ;  use  made  by,  of 
part-time  system,  82  ;  instruction 
in  stenography  given  by,  94; 
correspondence  course  for  em- 
ployes of,  '.)l  95;  sewing  and 
millinery  classes  of,  L02 ;  library 
of,  104;  plant  organ  of,  107 
vacations  for  employes  of,  L32 
ventilating  methods  at,  158 
physical  examinations  of  employes 
of,  167;  medical  treatment  of 
employes  of,  173;  dental  work 
among  employes  of,  177-  178; 
optical  clinic  at,  1st)  1M;  tuber- 
culosis sanatorium  of,  182;  size 
of  medical  staff  of,  IV.  I  ;  experience 
of,  showing  futility  of  lines.  _'ii>; 
pay-envelope  system  of,  221  ; 
free  luncheons  at,  231  ;  hand  of, 
251  ;  glee  club  of,  251  252; 
athletic  association  of,  253 ;  gym- 
nasium classes  at,  256;  coopera- 
tive store  of,  283  ;  sickness  sur- 
veys made  by,  296  ;  Metropolitan 
Staff  Savings  fund  of,  319. 

Midvale  Steel  Company,  lateness 
statistics  at,  66. 

Miller  Lock  Company,  handbook 
for  employes  used  by,  61  a.; 
lunch-ticket  system  at,  l':;.">  ;  com- 
munity siiminn  at,  2  1 1    242. 

Miller  Tire  and  Rubber  Company, 
housing  developed  at  Akron  by, 
268. 

Minnequa  Hospital  of  Colorado 
Fuel  and  Iron  <  'ompany.   L82. 

Mock,  Dr.,  recommendations  of, 
concerning  lirst-aid  kit,  17">;  cited, 
189. 


360 


INDEX 


Montgomery      Ward      Corporation, 

group   insurance   of   employes   of, 

305. 
Morbidity,  weekly  reports  of,  191. 
Mucnstcrberg,    Hugo,    tests   devised 

by,  56. 
Munitions   workers,    effects   of   long 

working  day  on,  120-121,  123. 
Murray  Hill  Evening  High  School, 

New  York  City,  83. 
Musical  organizations  for  employes, 

250-252. 
Mutual  aid,   shifting  basis  of,   293 ; 

societies  for,  293-295.     See  Benefit 

associations. 

National  Association  of  Corporation 
Schools,  14. 

National    Cash    Register    Company, 
part-time  school  of,  82-83 ;    sales- 
manship school  of,  91 ;    promotion 
plan  used  by,  97 ;    cultural  educa- 
tion   at,     101 ;      library    of,     104 
suggestion  system   used  by,   213 
Women's  Century   Club  of,   242 
bowling    teams    of,    255 ;     Boys 
Garden  Company  at,  286. 

National  Catholic  War  Council, 
recommendations  by,  265. 

National  City  Bank,  New  York 
City,  coordinated  system  of  edu- 
cation and  promotion  of,  97-98. 

National  Safety  Council,  14,  136 ; 
safety  lectures  issued  by,  138. 

National  Society  for  Promotion  of 
Industrial  Education,  14. 

New  England  Telephone  and  Tele- 
graph Company,  rest  rooms  of, 
236. 

New  Jersey  Zinc  Company,  health 
work  of,  287  ;  provision  for  recrea- 
tion by,  288. 

Newspapers  for  employes,  104. 

Newton,  Mass.,  Trade  School,  83. 

New  Toy  Company,  employment  of 
blind  workers  by,  92. 

New  York  City,  private  employ- 
ment agencies  in,  36;  part-time 
pupils  in  high  schools  of,  81  ;  enor- 
mous fire  losses  in,  159  ;  coopera- 
tive medical  care  of  women  gar- 
ment workers  in,  195-197. 

New  York  Edison  Company,  train- 


ing classes  for  employes  of,  90,  94 ; 
Savings  and  Loan  Association  of, 
319. 

New  Zealand,  old-age  pensions  in, 
316. 

Night  schools,  technical,  83-85. 

Night  work,  generally  held  in  dis- 
favor, 122 ;  objections  to  and  ill 
effects  of,  122-124. 

Noon  hour  diversions  at  industrial 
establishments,  240-243. 

Nordyke  and  Marmon  Company, 
vestibule  school  of,  89. 

Northwestern  Knitting  Mills,  vo- 
cational training  classes  of,  90. 

Norton  Company,  cost  of  labor 
turnover  at,  70;  use  and  value  of 
dispensary  at,  165-166 ;  health 
bulletins  and  pamphlets  issued  by, 
199 ;  industrial  housing  policy  of, 
271,  273. 

Nurse,  the  plant,  190. 

Occupational  disease,  prevention  of, 
142-146. 

Ohio,  first  American  public  employ- 
ment bureau  in,  38. 

Old-age  insurance,  309-317. 

Oliver  Mining  Company,  vegetable 
cellars  built  by,  286  ;  club  house  of, 
290. 

Oneida  Motor  Truck  Company, 
cooperation  of  Green  Bay  Board 
of  Industrial  Education  and,  84. 

Optical  clinics  in  industrial  estab- 
lishments, 179-181. 

Orchestras,  employes',  252. 

Organ.     See  Plant  organ. 

Outings  for  employes,  256-257. 

Output,  weight  of,  as  a  test  of 
fatigue,  114-115;  increase  of, 
with  shorter  working  day,  117- 
120;  effects  of  night  work  on, 
123 ;  lowered  by  Sunday  work, 
126 ;  seasonal  variation  in,  156 ; 
effect  of  temperature  on,  156-157. 

Overlook  Colony,  industrial  village, 
274. 

Overtime,  expense  of,  125 ;  reasons 
for  restricting,  125. 

Owen,  Robert,  father  of  labor  ad- 
ministration, 8-9 ;  results  of  ex- 
periments of,  in  welfare  work,  10; 


INDEX 


361 


on    economy    of    shorter    working 
day,  116-117. 
Oxford,     Mass.,     campaign     against 
tuberculosis  at,  184-185. 

Packard  Motor  Car  Company,  ap- 
prenticeship school  of,  86-87 ; 
records  of  learners'  progress  kept 
by,  88-89 ;  school  of,  for  braining 
executives,  95-96. 

Packard  Piano  Company,  scientific 
management  accepted  by  shop 
committee  of,  223-224 ;  manage- 
ment-sharing at,  225. 

Parke  Davis  &  Co.,  Women's  As- 
sociation of,  242. 

Part-time  courses  in  schools,  36,  78 ; 
vocational  training  in,  81 ;  benefits 
of,  81-82. 

Paternalism  in  housing,  avoidance  of, 
269-270. 

Pelzer  Manufacturing  Company, 
schools  for  employes  of,  79. 

Pennsylvania,  industrial  accidents  in, 
136. 

Pennsylvania  Department  of  Labor 
and  Industry,  questionnaire  by, 
45. 

Pennsylvania  R.  R.,  teaching  of 
English  to  employes  by,  100 ; 
portable  bunk  houses  used  by,  279. 

Pensions,  or  old-age  insurance,  309- 
317. 

Personality  of  applicant,  importance 
placed  upon,  53-54. 

Personal  meetings,  104-105. 

Physical  examinations  of  workers, 
59-62  ;  an  accident  preventive,  140 ; 
benefit  of  periodic,  166-167 ;  rec- 
ords of,  191. 

Physician,  office  of,  in  industrial 
plant,  189,  330-332. 

Picnics  for  employes,  256-257. 

Piecework  wages  and  time  wages, 
203-204. 

Plant  chart,  the,  40;  for  use  in  pro- 
motions, 98. 

Plant  medical  equipment,  173-177, 
330-332. 

Plant  organ,  the,  105;  a  typical 
issue  of,  105-107;  special  points 
concerninn,  107  108;  form  and 
cost  of,  109;    frequency  of  publica- 


tion and  distribution,  110;    quali- 
fications of  editor  of,  110. 

Playgrounds  for  children  of  em- 
ployes, 289-290. 

Plumb  Company,  attendance  bonus 
paid  by,  210. 

Point  system  or  bonus-for-quality-of- 
work  system,  211-212. 

Port  Huron  Engine  and  Thresher 
Company,  reduction  of  accidents 
by,  137 ;  plan  of,  for  Shop  Safety 
Committee,  139. 

Port  Sunlight  Men's  Club,  253. 

Postal  Telegraph  Company,  success 
of  credit  union  in,  323. 

Premium  systems  of  wages,  204-206. 

Price,  Dr.  George  M.,  195,  197. 

Prizes  for  gardens,  285,  286. 

Productivity,  effect  of  labor  ad- 
ministration on,  4  ;  effect  of  light- 
ing on,  152-153 ;  comparative 
effects  of  bonus  systems  on,  211- 
212 ;  increasing,  by  adequate 
housing  conditions,  261. 

Profit  sharing,  growth  of,  19  ;  history 
of,  216;  defects  of,  216-217; 
gain-sharing  an  attempt  to  remedy 
defects  of,  217;  a  possible  ap- 
plication of,  217-218;  combined 
savings  scheme  and,  218-219; 
labor's  attitude  toward,  224 ;  to 
be  accompanied  by  management- 
sharing,  224-225. 

"Profit-Sharing,"  book  on,  by  busi- 
ness authorities,  217. 

Promotion,  systems  of,  96-97. 

Promotions,  reduction  of  labor  turn- 
over  by,    73-74 ;     hope   for,    as   a 
stimulating  efficiency  factor,  212 
213. 

Prudential  Life  Insurance  Company, 
noonday  concerts  at,  242. 

Psychological  tests  for  workers,  55- 
56 ;  function  of,  58. 

Pullman  Company,  paternalistic 
housing  venture  of,  2ti9   270. 

Quality-of-work  bonus  system,  211— 

212. 
Quality  progress  records,  211. 

Railroad  apprenticeship  schools,  87. 
Railroad  club  house-,  2  16, 


362 


INDEX 


Railroad  Liability  Act,  effect  of,  17. 

Railroad  rest  rooms,  236-237. 

Railroads,  medical  care  given  em- 
ployes by,  164. 

Ranney,  George,  quoted,  226. 

Rayewsky,  Dr.  Charles,  195. 

Recommendations  for  applicants  for 
work,  30-32. 

Recording  and  Computing  Company 
of  Dayton,  vestibule  school  of,  88. 

Records,  of  attendance,  65-66 ;  for 
employment  office,  75-76 ;  lost- 
time,  as  a  measure  of  fatigue,  115- 
116;  medical,  191-192;  absentee- 
ism, 192. 

Recreation,  rest  and,  226  £f.,  288- 
291 ;  rooms  for,  234-240 ;  during 
noon  hour,  240-243  ;  during  non- 
working  hours,  244 ;  club  rooms 
and  club  houses  for,  244-247 ; 
auditoriums,  247 ;  gymnasiums, 
247-248  ;  swimming  pools,  248 ; 
grounds  for  athletic  fields,  248- 
249 ;  vacation  bureaus,  250 ; 
management  of  activities,  257- 
259. 

References  of  applicants,  62-63. 

Reid,  Laurie  Jean,  health  work  of, 
in  Georgia,  287. 

Remuneration  of  employes,  method 
of,  200-225. 

Remy  Electric  Company,  health 
educational  campaign  of,  199. 

Republican  Metal  Ware  Company, 
job  specification  blank  used  .by, 
45. 

Republic  Motor  Truck  Company, 
plant  organ  of,  108. 

Rest  and  recreation  rooms,  234- 
240;  cost  and  supervision  of, 
238-240. 

Restaurants,  factory,  227-234. 

Rest  periods  in  working  day,  126  ff. ; 
a  preventive  of  fatigue,  129  ;  grow- 
ing popularity  of,  129-130;  regu- 
larizing and  enforcing,  130-131. 

Rike-Kumler      Company,      use      of 

physical  examinations  by,  60. 
Riverside  Portland  Cement  Com- 
pany, results  to,  of  employment 
of  physically  sound  workers,  140 ; 
results  to,  of  safety  measures  taken 
by,  309. 


Roach,  John,  article  by,  cited,  158. 

Robinson,  Harriet,  11. 

Robinson,  L.  G.,  co-author  of  Credit 

Union  Primer,  323. 
Rochester,    N.   Y.,    athletic   field   of 

button  factory  at,   249 ;    bowling 

among  employes  of,  255. 
Rochester,     University    of,     courses 

in  employment  management  at,  13. 
Rowan  premium  wage  system,  205. 
Russia,  company  stores  in,  284. 

Safety  committees,  employes',  138— 
139  ;    meetings  of,  139-140. 

Safety  devices,  137. 

Safety  education  for  employes,  100- 
101. 

Safety  first  movement,  135-136 ; 
arousing  workers'  interest  in,  137- 
140 ;  self-insurance  as  a  means  of 
forcing  interest  in,  308-309. 

Safety  talks  during  noon  hour,  243. 

Salaries  of  workers,  208.     See  Wages. 

Salesmanship  Research,  Bureau  of, 
57. 

Salesmen,  tests  for,  57 ;  schools  for, 
90-91 ;  system  of  special  training 
for  selected,  94. 

Sanatoria  care  for  employes,  181- 
183. 

Sanitation,  as  a  factor  in  working 
conditions,  146-152. 

Savings  scheme  and  profit-sharing, 
a  combined,  21S-219. 

Savings  plans  for  employes,  317-325. 

Sawyer  Park,  development  of  group 
house  at,  274 ;  stucco  houses  at, 
277. 

Saxon  Mills,  provision  for  recreation 
at,  289. 

Scale  for  rating  applicants,  54-55. 

Schneider,  H.,  cited  concerning  per- 
sonality of  applicants,  54 ;  value 
of  methods  of,  in  vocational  guid- 
ance, 59 ;  aim  of  work  of,  77 ; 
cited,  80,  81. 

Schools,  securing  employes  from, 
35-36 ;  industrial  and  vocational, 
77-110. 

Scientific  management,  development 
of,  14—15 ;  value  of,  in  relation 
to  remuneration  of  employes,  206- 
208;     objection    of    workers    and 


INDEX 


363 


labor  leaders  to,  223  ;   accepted  by 
shop  committee,  223-224. 

Scott,  W.  Dill,  cited,  54 ;  concrete 
scale  for  rating  applicants  devised 
by,  54-55 ;  scientific  studies  of 
salesmanship  by,  57. 

Scouting  for  employes,  34-35. 

Sears,  Roebuck  and  Company,  use 
of  physical  examinations  by,  60, 
172 ;  vacations  for  employes  of, 
131 ;  combined  profit-sharing  and 
savings  scheme  of,  218-219,  320; 
rest  room  of,  239  ;  athletic  fields  of, 
248;  tennis  courts  furnished  by, 
255. 

Seashore,  Professor,  tests  devised  by, 
56. 

Seneca  Falls  Manufacturing  Com- 
pany, vestibule  school  of,  89. 

Service  bonus  for  stabilizing  in- 
dustrial force,  211. 

Service  for  employes,  2. 

Service  pensions,  313-314. 

Sex,  as  a  predisposing  factor  in  in- 
dustrial diseases,  144-145. 

Shadwell,  Arthur,  study  of  industrial 
methods  by,  14. 

Sherwin-Williams  Paint  Company, 
cleanliness  enforced  among  em- 
ployes of,  144 ;  men's  club  room 
at,  236. 

Shop  Chautauquas,  243. 

Shop  committees,  223. 

Shredded  Wheat  Biscuit  Company, 
entertainments  for  employes  of, 
254. 

Sicher  and  Company,  English  classes 
at,  100. 

Sick  benefits,  of  trade  unions,  296 ; 
of  fraternal  societies,  297. 

Sickness,  measuring  fatigue  by,   1  I  5 
116;    relation  between  lon«  hours 
and,    121  ;    relation  between  ni^ht 
work  and,    124;    increase  of,  due 
to  Sunday  work,  126. 

Sickness  insurance,  294,  296-303; 
distribution  of  risk  in.  301  302; 
province  of,  in  United  States,  302- 
303. 

Smith,  Edward,  cited,  85. 

Social  clubs  of  employes,  264. 

Social  insurance  laws  in  Europe, 
294-295. 


Sopris,  Colo.,  educational  experi- 
ment at,  291. 

Solvay  Process  Company,  employ- 
ment bureau  of,  26  ;  Americaniza- 
tion  plan  of,  99-100;  results  of 
shortened  working  hours  at,  119; 
vacations  for  employes  of,  131. 

Spanish  River  Pulp  and  Paper  Mills, 
experience  of,  with  quality  progress 
record,  211. 

Special  training  classes  for  employes, 
93-94. 

Spoiled  work,  as  a  measure  of  fatigue, 
115. 

Springstead,  Mr.,  on  value  of  the 
credit  union,  323. 

Squier,  L.  A.,  quoted,  310;  study 
of  employers'  service  pensions  by, 
313,  316. 

Standard  physical  examinations  of 
New  York  Municipal  Civil  Service 
Commission,  170. 

Standards,  for  evaluating  labor  ad- 
ministration, 3-6;  for  housing  de- 
velopments, 278-280. 

Stenographers,  special  classes  for, 
94. 

Stereopticons,  use  of,  for  instruction, 
100. 

Stetson  Company,  use  of  physical 
examinations  by,  60 ;  service  bonus 
paid  by,  211. 

Stewart,  Ira,  early  advocate  of  eight- 
hour  day,  111. 

Stock-selling  plans  of  corporations, 
320-321;   difficulty  of,  323  324. 

Store  orders,  payment  of  wages  in, 
220. 

Strawbridge  and  Clothier  Company, 
employes  secured  from  schools  by, 
35;  Noon  Day  Club  for  twirls  at. 
242;  athletic  field  of,  248  249; 
musical  organisations  at,  251  . 
Athletic  Association  <<i,   253. 

Street  railway  club  houses,  246. 
railway  rest  rooms,  'I'M. 

Strikes      caused       by     disputes      OVOT 

'wages,  222  223. 
Stucco  construction  for  houses,  276 

•.'77. 
Suggestion    system-    a-    a    form    of 

bonus,  213  215. 
Summer    camps    for   employes,    249. 


364 


INDEX 


Sunday    work,    arguments    against, 

125-126. 
Swimming  pools  for  employes,  248. 
Sydenstricker,      E.,      quoted,      194 ; 

studies    of    health    insurance    by, 

296,  297. 
System  100%,  magazine,  13. 

Talks  on  health  for  employes,  197- 
198. 

Tardiness,  labor  loss  from,  65 ; 
methods  of  correcting,  65-66. 

Taylor,  Frederick  W.,  pioneer  in 
efficiency  movement,  14. 

Taylor  wage  system,  206. 

Technical  night  schools,  83-85. 

Teeth,  care  of,  of  employes,  177- 
179. 

Telephone  company  rest  rooms,  235- 
236. 

Telephone  employes,  training  classes 
for,  90. 

Telephone  girls,  summer  homes  pro- 
vided for,  249-250. 

Tennessee  Coal,  Iron  and  R.  R.  Co., 
health  work  of,  288. 

Tests,  for  army  officers,  54-55 ; 
psychological,  for  workers,  55- 
56 ;  salesmen's,  57 ;  function  of 
psychological,  58;  of  fatigue,  114- 
116. 

Thomas  Manufacturing  Company, 
social  club  of,  2&4. 

Thomson-Houston  Company,  em- 
ployment of  blind  workers  by, 
92. 

Three  positions  plan  of  promotion, 
96-97. 

Towne,  H.  R.,  gain-sharing  plan  of, 
217. 

Town  planning  in  development  of 
industrial  housing,  273-274. 

Trade  risk,  a  basic  principle  for  in- 
dustrial accident  insurance,  307- 
308. 

Trade  unions,  vocational  courses 
given  by,  81  ;  educational  activities 
of,  102-103 ;  vacations  enforced 
by,  132 ;  management  of  recrea- 
tional activities  by,  258-259; 
insurance  of  their  members  by, 
against  sickness,  296-297 ;  dis- 
tribution of  risk  in  insurance  by, 


301 ;  criticism  of  life  insurance 
efforts  of,  305. 

Transfers  of  employes,  73. 

Transportation  facilities,  housing 
and,  263-264,  266-267. 

Trautschold,  R.,  cited,  189,  192. 

Tuberculosis,  in  different  occupa- 
tions, 183-184 ;  methods  of  pre- 
vention, 184 ;  campaign  against, 
at  Oxford,  Mass.,  184—185  ;  failure 
of  campaigns  against,  caused  by 
employers,  185 ;  free  bed  funds 
curative  but  not  preventive,  185- 
186 ;  reemployment  and  after 
care  of  patients,  186. 

Tuberculosis  sanatoria,  182-183. 

Turnover.     See  Labor  turnover. 

Unfit,  placement  of,  by  physical 
examinations,  60—62. 

Uniforms  for  employes,  151-152. 

Unit  courses  in  technical  night 
schools,  83-84. 

United  Cigar  Stores,  promotion  plan 
used  by,  97. 

United  Shoe  Machinery  Company, 
club  house  of,  246,  247 ;  Athletic 
Association  of,  253 ;  Sam  Sam 
day  of,  256. 

United  States,  early  labor  adminis- 
tration in,  11-12;  societies  in,  for 
mutual  aid,  293-294. 

United  States  Federal  Employment 
Service,  38-39. 

United  States  Playing  Card  Com- 
pany, health  work  of,  287. 

United  States  Steel  Corporation, 
evening  classes  maintained  by, 
85 ;  encouragement  of  gardening 
by,  286;  health  work  of,  287; 
stock-purchase  plan  of,  320-321. 

Urban  housing  conditions  for  em- 
ployes, 263-266. 

Vacation   bureaus   for   assistance   of 

employes,  250. 
Vacations  for  employes,  131-132. 
Valmora  Industrial  Sanatorium,  New 

Mexico,  182-183. 
Veiller,  Lawrence,  quoted,  275. 
Ventilation  of  workrooms,  156-159. 
Vestibule  schools,  88-89 ;    conducted 

by  war  industries,  89. 


INDEX 


365 


Vickers  Limited  factories,  first-aid 
kit  used  in,  173-174. 

Viscose  Industrial  Village,  268,  273; 
house  rents  at,  280. 

Vocational  education,  77  ff. 

Vocational  schools,  continuation 
schools  as,  103. 

Vocational  tests,  55-58. 

Vogeler,  Dr.,  on  reemployment  of 
tuberculous,  186. 

Voluntary  annuity  system  of  old- 
age  insurance,  311-312. 

Wages,  importance  of,  200 ;  defini- 
tion of,  200-201 ;  scope  of  problem 
of,  201 ;  fixing  of  basic,  201-203 ; 
time  and  piecework,  203-204 ; 
premium  or  bonus  methods,  204— 
208 ;  of  salaried  and  office  workers, 
208 ;  work  stimuli  other  than 
regular,  209-216 ;  profit-sharing, 
216-219 ;  time  and  medium  of 
paying, 219-222. 

Wagner  Electric  Manufacturing 
Company,  basket-ball  teams  of, 
255. 

Walpole,  Mass.,  joint  medical  de- 
partment at,  187. 

Waltham  Watch  Company,  board- 
ing house  maintained  by,  280. 

Wanamaker's,  summer  camp  for 
employes  of,  249;  employes'  band 
of,  251;  singing  taught  in  Cadel 
Battalion  of,  252 ;  management  of 
recreational  activities  of,  2.">7. 

Wanamaker  Commercial  Institute, 
cultural  education  by,  101-102. 

Wanamaker  Women's  League,  do- 
mestic science  classes  of,  101. 

Warbasse,  J.  P.,  quoted  on  coopera- 
tive purchasing  and  distribution, 
284-285. 

War  industries,  system  of  vestibule 
schools  adopted  by,  89. 

Warner,  A.  C,  on  old-age  de- 
pendency, 310. 

Warner  Brothers,  club  bouse  erected 
by,  2  11. 

Wastes  in  advertising  for  applicants, 
32  34. 

\\ rater,   drinking,   for    workers.     1  19 
150. 

Wayne    Knitting    Mills,    profit-shar- 


ing  and    management-sharing    at, 
225. 

Welfare  work,  2  ;  historical  origin  of, 
6-12.  See  under  Labor  adminis- 
tration. 

Western  Electric  Company,  system 
of  promotion  at,  71;  arrangement 
of  employment  department  of,  7", ; 
employment  of  blind  workers  by, 
92 ;  system  of  special  training 
employed  by,  93-94. 

Western  EUctric  A  -  us,  a  typical 
plant  organ,  105-107. 

Westinghouse  Electric  Company, 
blind  employes  of,  92  ;  statistics  on 
accidents  from,  141 ;  promotion 
system  at,  and  results,  212;  wage- 
payment  system  at,  222. 

Wharton  School  of  Finance,  Uni- 
versity of  Pennsylvania,  13. 

Whipple,  Guy  M.,  quoted  on  psycho- 
logical tests,  58-59. 

Whitney,  Miss,  model  emergency 
equipment  described  by,  17"). 

Willys-Overland  Company,  bonus- 
for-quality-of-work  system  used 
by,  211-212. 

Winchester  Repeating  Arms  Com- 
pany, refreshments  served  at, 
231. 

Wisconsin,  state  insurance  scheme 
in,  312. 

Women,  susceptibility  of,  to  in- 
dustrial diseases,  1  1">. 

Worcester,  Mass.,  failure  of  tuber- 
culosia  campaign  at,  L85. 

Working  hours,  lllff.;  fatigue  in 
relation  to,  112  ill;  economy  of 
shorter,  116-122;  question  of 
length  of  working  period,  L26 
131  ;  cooperation  of  employee 
essential  to  success  of  shorter, 
134;  relation  between  housing 
and.  263. 

Workmen's  ("irele,  tuberculosis  sana- 
torium of.  195. 

Workmen's  ( Compensation  Laws,  308 
effect   of.  on  medical  eare  of  em- 
ployes, lii  1    165. 

Workshop  committee  movement . 

X-ray  rooms  in  medical  departments 
of  industrial  establishments,  177. 


366 


INDEX 


Yonkers,  N.  Y.,  Sprain  Ridge  Sana- 
torium at,  186. 

Y.  M.  C.  A.,  night  school  program 
of,  85,  102  ;  industrial  program  of, 
243  ;  industrial  club  houses  under 
control  of,  258. 

Youngstown  Sheet  and  Tube  Com- 
pany, housing  development  by, 
268. 


Y.  W.  C.  A.,  evening  classes  of,  102 ; 
factory  meetings  during  noon  hour 
conducted  by,  243  ;  industrial  club 
houses  under  control  of,  258. 


Zeiss  optical  goods  factory,  results 
of  shorter  working  day  at,  117- 
118. 


Printed  in  the  United  States  of  America. 


This  book  is  DUE  on  the  last  date  stamped  beloi 


JUN^ 


193* 


m     3  1335 

JAN*      l"oi 

JAN  22  194b 
.<*  871950 

1962 

nW***8* 

I  %  196'i 

SJSSl  ^0  2'9d 

Form  L-9-10m-5,'28 


ftEC'D  LD-URt! 
2 


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